Cement Stocks Outlook for the week – 26 to 30.10.2015
May
move sideways next week; Ambuja result eyed
( www.rupeedesk.in )'
Stocks
of major cement manufacturers are seen trading sideways to negative next week
as
demand scenario for the sector is still bleak. Cement manufacturers have
witnessed a
fall
in demand over the past few months with activity in the infrastructure sector
not
showed
signs of a rebound. The cement industry is seen back in the positive only by
Jan-
Mar.
Stakeholders would also keep a close eye on the Jul-Sep earnings of industry
major
Ambuja
Cements Ltd, due on Wednesday. Ambuja Cements is seen reporting a net profit
of
1.81 bln rupees for the Jul-Sep quarter, down 24% on year. The company is seen
reporting
a flat net sale of 21.37 bln rupees. The company's counter is seen trading with
a
negative
bias during the coming week.
India's
largest cement maker, UltraTech Cement Ltd, reported a dull 3.3% rise in its
net
profit
for the Jul-Sep quarter, and as a result is likely to see its counter trade in
a narrow
range
next week. Low demand in the sector will ensure that the bias stays negative
for
UltraTech.
Cement companies typically see a weak quarter in Jul-Sep as monsoon keeps
demand
subdued and this year the added hit of a slowdown in the infrastructure sector
has hurt the industry hard.
has hurt the industry hard.
