Welcome to Financial House......your place to Learn and Earn
Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes are believed to be accurate and correctly dated, but www.stockmarketindian.com does not warrant or guarantee their accuracy or date.
www.stockmarketindian.com takes no responsibility for any investment decisions based on recommendations provided on website.
Financial contents like Technical charts, historical charts and quotes are taken from NSE and Yahoo sites.
Note - All quotes are delayed by 15 minutes and unless specified.
Google Adsense Ads are posted on every page of the website so visitors clicking on Ads and going to those links and carrying any financial deal is not at all related to www.stockmarketindian.com and any financial deal should be done on their own sole responsibility.
Please read our Disclaimer page before using any material or advice given at www.stockmarketindian.com
It's the end of earnings downgrades for cement
After a few subdued quarters, cement prices have shown an uptick. Prices rose to Rs 280 per 50-kg bag, from Rs 210-220 a bag in December 2015-January 2016.
In West, too, prices are up Rs 20-40 per bag, with prices in Maharashtra and Gujarat having touched Rs 290 and Rs 270 a bag levels. Prices in South India had already gained 8.5 per cent over a year in the December quarter. On the demand side, analysts expect more recovery after Holi. The months up till June are considered best in terms of demand, as thereafter monsoon sets in, thereby subduing construction activity.
Experts are now banking on further recovery in infrastructure after the Budget’s infrastructure push. However, this might take some time, given the process involved in fund allocation and project awarding. So, post monsoon season is the time when analysts foresee a good uptick in demand.
Slower capacity addition will also help. India Ratings expects producers to add 40 million tonnes per annum (mtpa) capacity over FY15-FY17, a CAGR of 4.9 per cent, lower than 5.8 per cent growth seen during FY13-FY15 (additional 42 mtpa).
What’s more, higher volumes, better prices and benign costs (fuel and transportation) should improve Ebitda per tonne of cement players, arresting the earnings downgrades for large-caps, ACC and Ambuja Cements trade at relatively inexpensivevaluations (10-10.5 times the CY16 Ebitda) and consensus estimates need upgrades to account for pricing and efficiency improvements.
In North-Central bets, as JK Lakshmi Cement, JK Cement and Prism Cement, while UltraTech remains their preferred pick.