Below is the Quote on Cement Sector By Mr. Keshav Lahoti- Associate Equity Analyst, Angel Broking Ltd
"From the start of October month, cement stocks, especially large caps companies are rallying on the hopes that cement prices will increase as monsoon is over, on the expectation of strong Q2FY21 numbers and improving demand scenario. For Q2FY20, we expect cement companies to report strong growth in EBIDTA/tonne on account of decrease in cost/tonne especially due to reduction in power and fuel cost. For the quarter, we expect JK Cement and Shree Cement to report strong volume growth YoY on account of addition in capacity. Currently, we believe cement demand is almost close to normal levels in Eastern, Northern and Central parts of India. In upcoming months, we expect cement demand to pick up as more off take of cement will happen from infrastructure and urban real estate activity. From an investment point of view, we are bullish on the sector. Our preferred picks from large caps is UltraTech Cement and mid caps is JK Lakshmi Cement."
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