Cement Stocks Outlook for the week – 21 to 24.12.2015
(Seen trading within range with negative bias)
( www.rupeedesk.in )
Stocks
of cement manufacturing companies are seen trading in a tight
range
with a negative bias next week, as demand for the building material
is
yet to pick up across the country. Last week, stocks of cement
companies
had gained ground, snapping days of fall, after the
Competition
Appellate Tribunal had set aside the Competition
Commission
of India's 63-bln-rupee fine on 11 cement manufacturers in a
2012
case.
This
momentum is unlikely to sustain due to weak demand for the
product.
Across the country, cement prices have fallen by 15-30 rupees
per
50-kg bag due to persistently weak demand, particularly over the past
three
months.
We
expect sees a strong case for revival of price and supply discipline in
northern
and western region of the country. It believes companies would
soon
need to raise cement prices, especially after the weak Jul-Sep
earnings, to shore up margins.