Nov 16 2023, 10:57
5 mid & smallcap cement stocks with upside up to 36%:
Cement companies were quick to raise the prices after mansoon. While they do raise the prices, it is not done in such a short time after the lean season, also sometimes the noises which are heard from user industry like real estate and infrastructure companies when prices are raised were not heard this time. This is an indication of strong demand which in turn is an indicator of better growth. We take a look at what analysts are saying across cement companies.
Refinitiv's Stock Report applies different algorithms & filters to all BSE and NSE stocks, and lists down stocks which fulfill the various criteria as specified into the algorithms & filters.
Strong demand, pricing discipline in part of the country and ability to raise prices as soon as the seasonal factor of monsoon got over brought back the focus on cement stocks. With stable energy costs, the operating matrix of the cement sector is favourable.
Now a large number of times, whenever cement is heard on the street, focus goes to large companies, but in the last few years a number of mid-cap companies have reached the capacity levels from where increase in capacity leads to more operating gains, essentially they have reached the inflection point where the margins will expand and stay at better level. With the continued focus on infrastructure, most of the small and mid-cap companie have been able to improve the quality of their balance sheet in the last nine years.
Cement Stocks - Upside potential
Nov 15, 2023
Upside Potential %
Market Cap Rs Cr
Inst Stake %
Company Name
Avg Score
Analyst Count
Market Cap Туре
Reco
NCL Industries
6
Strong Buy
1
36.5
0.6
Small
966
Star Cement
5
Hold
12
36.1
6.3
Mid
6,289
Heidelberg Cement India
5
Hold
14
34.3
12.6
Mid
4,256
JK Lakshmi Cement
6
Buy
15
27.6
30.8
Mid
9,220
Sagar Cements
3
Buy
10
17.3
21.8
Small
3,408
Calculated from highest price target given by analysts
source: et
Nov 16 2023, 12:44
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