Cement Stocks Outlook for the week – 27 to 31.07.2015
(Seen
down next week on weak demand, monsoon)
Stocks
of cement companies are seen lower next week owing to weak demand for the
building
material.
Cement companies' stocks will not move up unless demand for cement rises and
government project boost construction activities. Government projects have to
go through regulatory approvals. Only in the first quarter of financial year
2016-2017 (Jan-Mar period), we can hope (for a ) pick-up in cement demand.
Moreover,
with the intensification of monsoon across the country, demand for cement is
likely to
remain
weak till Aug 15. The recent earning reports of ACC Ltd and UltraTech Cement
did not help the sentiment for cement stocks.
Though
UltraTech Cement fared well but ACC results were not satisfactory. The stocks
rallied after UltraTech Cement results came out but have dipped down again. Not
much is happening to boost the demand.
