Cement Stocks- Taking Off Now

Cement stocks are seen being bought by the Funds & HNIs, for the last 1 week or so, post Q2 numbers having been declared by over couple of Dozen companies till date. It is well known fact that Infrastructure and Housing are seeing big revival, which will see demand growth, coupled with pricing power seen coming back. Till next Monsoon, viz. till  June,2022, this sector will keep doing well, with marging traction, coupled with demand growth, thus having good visibility on next 3 quarterly numbers.

In this scenario, better to pick companies having good track record, backed by the promoters, at lower EV per tonne, or brown field expansion being carried out, or control on Power & Fuel and Freight cost, thus improving the margins.

There are about 60 listed Cement stocks, but meaningless to buy all (which is not practical as well) but pick maximum 3 or 4 stocks, based on the theme as stated above.

We have already recommended such 3-4 stocks to our members, where stcks are now seen in ACCUMULATION, due to give a BIG BREAK OUT in next couple of months.

This is not a Buy or Sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.