Correction in cement shares is an investment opportunity

UltraTech remains top pick but analysts also find value in ACC, Ambuja, Shree Cement and Ramco

After multiple price increases since March, resulting in a rally, cement stocks such as UltraTech, ACC, Ambuja Cements and Shree Cement have fallen from their highs. This is on the back of concerns related to less inventory at the stockist level, ahead of implementation of the goods and services tax.

Also, the onset of monsoon will impact offtake and is a dampener for the stocks. All corrections, however, are an opportunity to buy, given the improving realisations, better demand trajectory in the second half of the financial year and improving demand-supply equation over time, believe analysts.

On realisations, analysts expect