Buy cement stocks on 10-12% correction: Dipan Mehta

Mehta told CNBC-TV18, "It’s a bit difficult to take a call on cement stocks at this point of time because fundamentally certainly these stocks are quite attractive and there has been fantastic transition in the cement industry where they have been able to manage their costs better. They have been able to manage their bottom-line better. If you see all their various capital ratios in terms of return on capital employed, return on net worth, all these have improved significantly over the past 2-3 years."

He further added, "They have become consistent performers as we have seen over the past few quarters or so, but this particular order of the CCI certainly soured the sentiment in the sector. And I would just like to put the entire sector on hold for the time being and look for buying into these stocks only if there is a further 10-12% kind of a correction and there is greater clarification or atleast some further progress on the appeal as far as the industry is concerned. Because these particular fines are quite stiff and certainly it would affect the financials. Even going forward the operations of the company with this kind of set back, how the industry will operate also needs to be seen."