Expect 10-15% upside in Holcim Group, Ambuja and UltraTech: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities shares his view on the cement space.

ET Now: What would be your call right now on cement especially ACC and Ambuja Cement?

Deven Choksey: Well from the demand side, as far as the price realisation is concerned, in the second half of the financial year with many projects getting kick started, you will have better demand coming up, so there will be the capacity utilisation for most of the companies. The larger ones like Holcim Group and the UltraTech Group would be favourable and that could possibly help some amount of pricing advantage in different pockets.

But that may not be across the country but in different pockets in the country itself. So from that perspective if you look at it going forward, in these two quarters that is October to December quarter and January to March quarter, you might see better realisation along with volume growth and that brings the point of adding them into the portfolio.

I would think they could be added, they could probably give a headroom of around 10 to 15% in the good market. It would be an advantage to add them into the portfolio at lower levels if the market gives an opportunity at any point of time. Otherwise I believe that 10 to 15% of an upside is possible in all of the cement stocks particularly the Holcim Group companies and Ambuja and UltraTech.