Cement stocks could fall further: analysts

Say stocks could see a downside of more than 5%

Weak September quarter performance along with low project off-take has made analysts wary of cement stocks. These stocks could see a downside of more than 5% or more from these levels, they said.

Besides, valuations had also moved up, they said.

Stocks like Shree Cements, Ambuja Cements and Ultratech Cements have risen by 10.8, 13.3 and 3.5% since April this year. The stock price of ACC has remained more or less the same.

The June-September quarter is typically bad for the cement sector due to monsoons. This year's bumper monsoon has made things worse for this sector.

Further, some analysts believe that with elections round the corner the possibilities of investments and projects picking up too remains low.