Prefer UltraTech Cement, Shree Cements: Anand Rathi

Jaspreet Singh Arora, Senior Analyst - Cement & Construction - Institution Equity of Anand Rathi told CNBC-TV18, "UltraTech Cement has been a top pick in cement sector. Post the deal, it is going to be sometime before that materialises and come on to UltraTech’s books because there are whole host of approvals required before UltraTech can take over that asset. But given the fact that it was backed at a very fancy valuation, which is probably at the lowest that one could have seen in terms of deal in the last couple of years."

He further added, "UltraTech is a domestic story and the largest player and they are also present in ancillary businesses like white cement and putty and the amount of growth that one can expect in a largecap like UltraTech we are not expecting that in ACC or Ambuja. So tomorrow if there is any volume growth in double digits coming back to the sector in either next calendar year or year after, probably UltraTech will be the only one to catch on that and get the benefit of it."
"In the midcap space, we are bullish on Shree Cements and The Ramco Cements but the way The Ramco Cements has performed in the last two quarters, the only name to bet on right now in the midcaps would only be Shree Cements."