Cement Stocks Outlook for the week – 28.12.2015 to 01.01.2016
Seen
down on weak demand, low pricing power
( www.rupeedesk.in )
Stocks
of cement manufacturing companies are seen falling next week due to
persistent
low demand across the country and the resulting low pricing power with
companies.
Across the country, cement prices have fallen by 15-30 rupees per 50-kg
bag
due to weak demand, particularly over the past three months. Analysts expect
cement
companies to take a hit on their margins in the near term due to price cuts.
Looking
at downgrading earnings estimates for cement companies in the near term
due
to the poor market conditions and weak pricing environment. Stocks of cement
making
companies are likely to under perform the broader markets. Some analysts,
however,
believe cement prices are likely to rise from the current low levels.
Demand-led
price recovery is likely to lead to better earnings growth for cement
companies in the near term