SP Tulsian of sptulsian.com shares his view on cement space.
Tulsian told CNBC-TV18, "This time we are expecting good results from cement stocks. I would put it that expecting excellent results. Just to give an example of Century Textile which have been pathetically posting bad results. In fact Q2 had EBIT loss of close to Rs 400-500 crore plus for cement and we see the dramatic turn which we have seen is the most inefficient unit having EBIT margin of close to about 22-23% so when you compare this I think the trend expected in case of ACC and Ambuja Cement has to be very good. Again expecting very good results from these companies and I think the same trend is going to continue for March as well as for June quarter also."
He further added, "When you have the visibility of good three quarters that is the reason in fact we have seen a good run up. In fact apart from that more than 50% run up we have seen in the mid capacity cement companies those who have the capacity of anywhere between 2 to 5 million tonne. Those stocks have really seen an appreciation of 40-50% in this last one month or so."
