Bullish on smaller names in Cement sector: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Director, Altamount Cap Management, shares his views on Cement sector.

ET Now: Which is a fair point as well the valuations of some of these stocks are extremely high and I am sure that the earnings will not justify the valuations at least well what do you do with the pack?

Prakash Diwan: Very clearly valuations are stretched and this is more than a theoretical replacement, cost basis that some of these companies have started earning those kind of valuations but there is this smaller cement pack that has kind of yet to revamp and then match up to the biggies. If you take UltraTech, Ambuja, ACC aside and the kind of PE multiples that they get rewarded with commensurate with that there is a whole bunch of stocks which is still kind of not in the reckoning. I would look at some of those so JK Cement is definitely one of the prime ones, Prism has also kind of dealt further taking so some of the smaller ones could probably make the great but not the big ones any more because they have already run up quite a bit.