Prefer JK Lakshmi Cement: Kunj Bansal

Kunj Bansal of Centrum Wealth Management told CNBC-TV18, "In general, cement numbers have not been good whatever have been declared till now and are not expected to be good going forward as well. Although within that there was surprise that UltraTech Cement suddenly reported better than expectation numbers."

"The reason for choosing JK Lakshmi Cement, despite cement pack not doing well, is that 30 percent of it's top-line comes from white cement and not grey cement. It is a segment which has been doing reasonably well. It has not got as much affected by the sales in grey cement as much and the 30 percent converts to almost more than 50 percent in terms of bottom-line for the company. Also the stock has corrected from it's peak," he said. "This is a segment which is likely to continue to do well especially if you look at the performance of building material companies, sanitary ware companies and tiles companies. So white cement gets used in the decorative work in the housing and commercial properties. That is where we see the growth continuing to come in for JK Cement. Valuation wise it has become very attractive now. The company is also expanding capacity. In fact, it has presence in Gulf as well." "So, this is a segment which will keep doing well and that is the reason for a sort of a contrast sector recommendation, if I may say."