HeidelbergCement India looks good for long term: PN Vijay

HeidelbergCement India looks good for long term, says PN Vijay, Portfolio Manager.

Vijay told CNBC-TV18, "The cement party has been rolling inspite of bull and bear markets and almost all the leading stocks are at 52 week high. So in cement one needs to dwell a bit deeper, the early picking, the low hanging fruit as they say is done with. I like two stocks where the pedigree is high; one is Heidelberg Cement. It is the old Mysore Cement of the Birla’s which was taken over by the European major and they are getting into a very large capacity expansion and apart from that the capacity is much more modern in technology, so the cost per tonne of production be a lot less, so for a long-term player Heidelberg will be a great midcap idea."
He further added, "India Cement use to be talked about as same being in the major ones. It’s now gone into a midcap, after a long time India cement is seeing a spurt of activity and it is sweetly placed because southern markets generally command better pricing especially the Kerala market etc. So these two stocks for people who still have the appetite for cement and I am mildly bullish because it’s such a domestic industry it doesn’t have any international play involved through exports-imports etc. So I would go for two midcaps of stellar management like Heidelberg the multinational and India Cement, the Chennai based player."