Volume growth concerns recede, realisation gains key for cement stocks

UltraTech and Shree Cement are top picks in a sector grappling with higher capacities

The lifting of a stay on construction by the Supreme Court in Uttarakhand and Maharashtra should come as a relief for cement makers. Experts feel that Madhya Pradesh, which has been affected by the ban on construction activities, may also get relief as the state government submits its compliance report on adherence to solid waste management rules.

Maharashtra has remained a major cause of concern, being a key state for real estate as well as infrastructure spend. This is because 57 per cent of top six cities’ real estate demand and 10 per cent of the overall cement demand are accounted