Cement Stocks Outlook for the week – 18 to 22.04.2016
( www.rupeedesk.in )
Stocks
of cement manufacturers are seen trading with a positive bias next week, primarily
because of forecast of above normal monsoon rains this year, which is expected
to improve rural incomes and consequently spur spending on home construction.
Housing
is the single biggest demand segment for cement in the country. On Tuesday, the
India Meteorological Department forecasted the southwest monsoon rains this
year at 106% of the long period average or 6% above normal.
Among
large cement companies, expect UltraTech Cement to gain the most in the near term,
given its better distribution reach and brand pull across the country
UltraTech
Cement stock are expected to limited upside from their current level. Since Mar
4, the stock has appreciated by 10% on account of change in pricing dynamics
for
cement
companies across the country (except south) and long-term positive effect of
the
company's
deal to buy some cement units of Jaiprakash Associates.
