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India Equity Research Reports, IPO and Stock News
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CEMENT
Current view
q Union budget is expected to be positive for the cement sector in terms of higher
budgetary allocations for infrastructure sector. This is likely to boost cement demand
going forward which had remained lower than expectations during FY11.
q Cost pressures continued to remain high, thereby putting pressure on margins.
Companies expect import duty on coal and pet coke to be abolished.
q We continue to maintain our negative stance on the sector since incremental
supplies are continuously putting pressure on the cement prices. Though cement
prices were hiked in last quarter due to pricing disciple exhibited by cement
players, we don't expect these price hikes to remain sustainable. Along
with this, corresponding increase in cement volumes is not being witnessed in
past few quarters due to slower demand growth.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
CEMENT
Current view
q Union budget is expected to be positive for the cement sector in terms of higher
budgetary allocations for infrastructure sector. This is likely to boost cement demand
going forward which had remained lower than expectations during FY11.
q Cost pressures continued to remain high, thereby putting pressure on margins.
Companies expect import duty on coal and pet coke to be abolished.
q We continue to maintain our negative stance on the sector since incremental
supplies are continuously putting pressure on the cement prices. Though cement
prices were hiked in last quarter due to pricing disciple exhibited by cement
players, we don't expect these price hikes to remain sustainable. Along
with this, corresponding increase in cement volumes is not being witnessed in
past few quarters due to slower demand growth.
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