Bullish on cement: Sanjay Sinha, Citrus Advisors

Sanjay Sinha, Founder, Citrus Advisors, in a chat with ET Now, gives his views on cement stocks


Cement is always considered as a proxy to a country’s economic growth. At a time when Indian economy is slowing down, why are cement stocks outperforming?

For that, you need to travel outside the metropolitan cities and see what sort of massive construction activity is happening in the tier 1 and tier 2 cities. The domestic consumption story is very much intact even in the so-called economic slowdown. Mind you 6.9% GDP growth is not a slowdown actually. It is only a relative growth that is not comparable to the 8.4% that we saw in 2011, so that is very much intact. Going forward this is only likely to accelerate because there is some sign that the government’s policy paralysis is somewhat now coming down and the government is coming on the front foot as far as the project announcements and the award of projects are concerned, so this will also be a factor, which will contribute not only to the broader economy but also to the cement sector in particular.