Indian cement industry is the world's second largest cement industry. This industry is returning after a long gap. Domestic cement companies are returning pricing power, which have not been with the companies for some time now.
For the last financial year cement sector has been good for many reasons. For nine years, the growth of industries for the first time in double digits Apart from this, its capacity utilization also increased by 5 per cent to 71 per cent, which is the highest level of last seven years. Cement prices also increased by 2 percent.
Hope this year, the industry can roast the success of the financial year 2019 and can increase its realization by 2 to 5 percent. Industry will benefit from the government's investment in the infrastructure sector. The central government wants to construct a 6,000-kilometer road in the next five years.
Apart from this, the demand for schemes like affordable housing scheme will be strong. Analysts believe that if the government does not allow the pace of infrastructure investment to decrease, the rate of increase in cement prices can be retained.
Continuous increase in cement prices will increase the attractiveness of cement stocks. Keeping in mind the current conditions, it can be said that in the financial year 2020 this sector will perform well from the northern, mid and eastern regions. Ultratech Cement, ShreeSimment, Ramco, JK Lakshmi Cement and Orient Cement are expected to grow in this sector.
In the past four months, cement stocks have been strengthening 35 to 40 per cent and are trading in premium valuations compared to their historical average. Due to expectations of good performance in the financial year 2020, there is little likelihood of a decrease in premium valuation.
For the last financial year cement sector has been good for many reasons. For nine years, the growth of industries for the first time in double digits Apart from this, its capacity utilization also increased by 5 per cent to 71 per cent, which is the highest level of last seven years. Cement prices also increased by 2 percent.
Hope this year, the industry can roast the success of the financial year 2019 and can increase its realization by 2 to 5 percent. Industry will benefit from the government's investment in the infrastructure sector. The central government wants to construct a 6,000-kilometer road in the next five years.
Apart from this, the demand for schemes like affordable housing scheme will be strong. Analysts believe that if the government does not allow the pace of infrastructure investment to decrease, the rate of increase in cement prices can be retained.
Continuous increase in cement prices will increase the attractiveness of cement stocks. Keeping in mind the current conditions, it can be said that in the financial year 2020 this sector will perform well from the northern, mid and eastern regions. Ultratech Cement, ShreeSimment, Ramco, JK Lakshmi Cement and Orient Cement are expected to grow in this sector.
In the past four months, cement stocks have been strengthening 35 to 40 per cent and are trading in premium valuations compared to their historical average. Due to expectations of good performance in the financial year 2020, there is little likelihood of a decrease in premium valuation.
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