Cement stocks: Street hopeful of a better future driven by pricing gains

UltraTech, which has continued growing its capacities, is best placed to take benefits of the cement upcycle

Cement stocks have taken a significant beating in a seasonally soft quarter affected by monsoon. Realisations have remained subdued, while cost pressures continue unabated. The start of October, too has not seen significant uptick in prices with Kotak Institutional Equities’ channel checks suggesting that all India cement prices are down in the current month by Rs 2 per 50 kg bag compared to September as pricing weakness continued in FY19. 

The pressure on the cost front, however continues to rise. Analysts say, cost pressures may continue for cement companies with spot rupee to dollar rate down five per cent compared to