Cement Sector- North and Central still heading South n Emkay

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Cement Sector

North and Central still heading South

n     All India avg cement prices see decline of ~Rs5/bag m-o-m.  However northern region see cuts of ~Rs10-15/bag m-o-m  NCR most affected -sluggish demand impact price by Rs20 

n     Central continues to bleed avg price decline Rs10-12/bag over last 6 weeks-Carnage in Lucknow as price decline Rs30 from early July. Manufacturers attempting to stabilize the scenario, tentative hikes scheduled to prevent further drop

n     Western Region bucks the trend-avg prices up Rs3/bag m-o-m led by sharp price hikes of Rs15-20/bag in Gujarat over last 3-4 weeks. Similar trends in East, price up ~Rs10 m-o-m

n     Remain NEUTRAL on sector as demand continues to remain sluggish and no anecdotal evidence of revival. Maintain REDUCE ratings on ACEM & UTCEM. Prefer ACC and Grasim