Significant upside hinges on demand revival in cement industry: Analysts

Cut in corporation tax provides respite, say analysts

The cut in corporation tax rates is giving some respite from the weak sentiment that prevailed towards cement companies. The stocks of UltraTech Cement, Shree Cement, ACC, and Ambuja Cements have gained 12-15 per cent in the last two trading sessions, given that most of them paid tax at the rate of over 30 per cent in FY19. 
 

Analysts say the benefits of the rate cut may flow to the bottom line of these companies, or they can utilise the savings towards funding expansions to drive future growth. However, the key is a recovery in cement demand and prices.
 

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