Government measures to boost cement demand
India's cement industry will witness a sharp recovery in cement prices in fiscal 2013-14, on improving supply-demand dynamics and the government action to fast track infrastructure projects, analysts say.
December 18, 2012 / 15:00 IST
India's cement industry will witness a sharp recovery in cement prices in fiscal 2013-14, on improving supply-demand dynamics and the government action to fast track infrastructure projects, analysts say.
Deutsche Bank believes cement companies such as UltraTech Cement
and Shree Cement that have potential to increase capacity and have a bigger presence in western and northern India will witness "disproportionate benefits".
Bank of America Merrill Lynch upgrades Ultratech Cement and India Cements to 'buy' from 'underperform' in reports dated on Friday.
Morgan Stanley maintains an 'attractive' view on the sector, and recommends investors to buy cement stocks on weakness because on expectations of easing capacity addition and pickup in cement demand, in a report dated Friday.
Mid-cap cement companies outperform large caps: India Cements gains 0.7 percent, JK Cement is up 1 percent while Madras Cement rises 1.8 percent.
Ultratech Cement shares are down 1.2 percent, ACC gains 0.1 percent.
The Thomson Reuters construction materials index down 0.08 percent as of 1.25 pm. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
