Bullish on cement sector at current levels: Sanjay Sinha, L&T Mutual Fund

Sanjay Sinha, CEO, L&T Mutual Fund in a chat with ET Now talks about cement sector.

Would you deploy more money into the cement pocket and would you make a bifurcation between the larger and the smaller ones because there is a valuation gap?

Yes, I would be bullish on cement even at the current levels and one of the reasons why this sector probably did not participate a littler earlier than now was because of this huge scepticism about a large supply overhang. Going by the level of activity that we are going to see in the construction space whether that be infrastructure or real estate, both commercial and residential, the demand is still going to keep pace with the supply that is coming in the sector. So therefore, overall on the cement sector, we would be bullish. Cement at times is a very regional play. Because of these geographical spread, companies have sometimes displayed differential behaviour as far as the stock prices are concerned because the outlook on demand also has a certain amount of geographical uniqueness. So, there I would say that you can probably take a pick across large and mid cap but you can probably play it much better by being selective in terms of concentrating on the companies of a particular geography at a point of time rather than being just investing in pan-India cement companies.