Cement Stocks Outlook for the week – 31.07.2017 to 04.08.2017

Cement Stocks Outlook for the week – 31.07.2017 to 04.08.2017

Free Intraday Tips : Join Our Whatsapp No : 9841986753
Free Commodity Tips : Join our Whatsapp No : 9094047040

Cement Stocks Outlook for the week – 31.07.2017 to 04.08.2017 )

Stocks of cement companies are seen trading mixed next week as the industry continues to grapple with weak demand. Cement prices across the country have declined by 1.1% on month because of above-normal monsoon and problems related to implementation of the goods and services tax. Jul-Sep is generally a weak quarter for cement companies as construction work almost comes to a standstill. Dealers in Delhi-National Capital Region said they expect demand to improve only post monsoon. Problems regarding availability of sand in Uttar Pradesh and Punjab have also contributed to the slowdown in cement demand. Heidelberg Cement India, which announced its Apr-Jun earnings yesterday, also attributed the 8.3% fall in its sales volumes to shortage of sand and aggregates in
Uttar Pradesh. Analysts, however, remain positive on the sector in the long term as they expect government spending on infrastructure and a pick-up in housing to boost demand. We continue to believe that demand will increase post-monsoon. Smart cities, road, metro projects will pick up, and
add to this the rise in rural income because of good monsoon. Ambuja Cements, in a release post announcement of its quarterly earnings on Monday, had also said it expects the economy to be spurred in the second half of the year because of good monsoon and government's focus on infrastructure and affordable housing. Next week, stocks of ACC are seen gaining, while those of UltraTech and Ambuja Cements are seen in a tight range.

Source : Cogencis Information Services Ltd.