Cement sector - Improving Demand Scenario - Angel Broking

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

Cement stocks are making fresh highs due to improving demand scenario and increase in realisation. Although, demand is not yet back to pre covid level. Due to reduction in cost especially power & fuel, cement companies margins have improved. There is pick up in non-trade segment cement demand, as labourers issue is getting resolved as labourers are coming back to work after the festive season. Due to the improving demand scenario, companies are planning for fresh capex. We continue to be bullish on the cement sector. Our preferred pick from large cap is UltraTech Cement and midcap space is JK Lakshmi Cement.

Source : Equity Bulls

Keywords