Cement Industry - Industry View - Angel Broking

Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd

"As per core industries data, cement production declined by 14.6% in August, 2020 over August, 2019. Its cumulative index declined by 29.1% during April to August, 2020-21 over the corresponding period of previous year. The cement industry demand is slowly improving from the disruption created from covid-19 due to pent up demand and improved rural demand. In the coming days due to relaxation of lockdown measures, we expect improved demand of cement from the urban market and infrastructure. Although sales volume of cement is declining, margins are not a worry due to pricing discipline and reduction in cost. We prefer UltraTech Cement in large cap space and JK Lakshmi Cement in midcap cement space."

Source : Equity Bulls

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