Dipan Mehta, Member of BSE, NSE is of the view that investors should exit India Cement at current levels.
Mehta told CNBC-TV18, "It's another sector that we are clearly avoiding and the reasons are quite apparent. I think that the kind of government pressure, which we saw in cement prices, has clearly dampened the sentiment of cement stocks. At the same time, it is really visible that maybe couple of years down the line the kind of capacity, which will come on stream, will cause a temporary glut in the market and I think the stock is already factoring in that macro level development. So I think every rise is an exit opportunity for most cement stocks. On the other hand, we have a lot of the cement consumers like the construction, real estate, where there maybe better opportunities than cement. So clearly I would look at exiting out of India Cement at these levels."
Disclosure: None of the stocks we have spoken about we have an investment recommendation or our own proprietary investment. But I did give several suggestion into moving out some of the other sectors or stocks in which we may have an investment or may have recommended to our clients.
