Brokerages divided on cement stocks amid weak demand environment
As cement sector continues to see consolidation and price drops amid increasing competition intensity, brokerage firm Citi has maintained its bullish on Aditya Birla cement company. Nonetheless, Macquarie is mixed on the pack.
UltraTech Cement a buy
Citi continues with buy on UltraTech Cement and a target of Rs 13,000. The current downturn in demand was expected on the back of elections followed by monsoons.
Cement industry to see consolidation
Citi mentioned that more hikes in cement prices are to be made as spot prices continue to be below Q1 average. Also, Citi added that the industry consolidation should continue.
ACC
Macquarie on ACC (CMP 2329)
Ambuja Cement
Macquarie on Ambuja Cement (CMP 617)
Maintain neutral, target raised to 620 from 608
Dalmia Bharat
Macquarie on Dalmia Bharat (CMP 1891)
Maintain outperform, target raised to 2176 from 2149
Ramco Cement
Macquarie on Ramco Cement (CMP 831)
Maintain neutral, target cut to 802 from 876