Manghnani bullish on cement space

Anil Manghnani of Modern Shares & Stock Brokers is bullish on cement space.

Manghnani told CNBC-TV18, "I am quite bullish on cement sector. I think the contrarian nature of mine is coming into play, I in the last couple of weeks had recommended Grasim and India Cement, so that would be a disclosure also that I have recommended to clients. But I think what is happening is that these stocks have decided to fall much more before the January collapse, they had probably started last year when the whole issue of excise and pushing down the prices with the government’s efforts, so they were on a downward track for a quite sometime."

He further added, "Leaving out ACC and Ambuja, I think they are still quite bad on the charts. But if you look at the other stocks like Grasim and India Cement, they are not collapsing with the rest of the market on a regular basis and they are not even volatile like the rest of the market. So they may be building up a nice base and infact India cement saw a lot of positive movement in the last couple of days. Even some of the smaller one’s Gujarat Sidhee, the one I don’t follow, they are also now showing a lot of trading patterns, good volume build up, good price movement. So I think that pack could surprise people or could catch people unaware like the IT moves, you might be able to see something like that panning out in the next few months in cement."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.