Buy UltraTech Cement at lower levels: Prakash Diwan

Prakash Diwan of prakashdiwan.in told CNBC-TV18, "Very clearly, the consolidation in the cement industry has worked in favour of the big getting bigger and of course, UltraTech Cement being the biggest, I am very excited to see the synergies unfold once the JP merger is completely on the ground and running. The debt component that they talked about which is also something very manageable for a large balance sheet like this. So, people are very clearly seeing visibility of earnings growth, operating leverage at its best.""The only opportunity that I see in buying into some of these stocks would happen sometime later before next September end numbers come out because remember September end quarter is usually a lean period, a lean quarter. Q2 is not the best because of the slowdown in construction activity on the back of the monsoon," he said. "So, post that and the festive season and the Seventh Pay Commission and the government’s focus on infrastructure, especially in smart cities and all is all working towards a lot of drum beats that would lead to better ratings, upgrades in terms of expectations on earnings. So, it is a good buy. Today it seems very stretched no doubt, but you are paying a premium because of the visibility. Wait for a good opportunity to build into these stocks, but keep them in your portfolio once you accumulate. That is the recommendation, but I would probably buy it at slightly lower levels."