Larger cement companies better placed despite higher valuations

Investors appear to have paid heed to the negative aspects in the recent past

The second quarter or the July-September period is usually a weak one for the construction sector and by extension, for the cement industry. The monsoon slows down construction activity and prices tend to soften. The current financial year, however, could be different because of the low base effect and also the fact that economic activity seems to be picking up.

The housing industry is doing better and public expenditure as outlined in the Budget has been focused on infrastructure, which means more construction projects. Hence Q2 is expected to deliver good results, with both volume expansion and better price realisations despite