FY14 will not be a great year for JK Cement, Birla Corp: Avinnash Gorakssakar

In a chat with ET Now, ET Now, Avinnash Gorakssakar, Head of Research, Mintdirect.com, shares his views on Cement space.

ET Now: Are you seeing that kind of pick up in institutional interest for names like ACC, Ambuja, UltraTech Cement?

Avinnash Gorakssakar: In terms of UltraTech Cement, definitely there seems to be good amount of buying and our sense is that even in the smaller caps something like a Birla Corp or may be a JK Cement, if one has a slightly longer term call and the next say six to eight months. My sense is FY14 will not be a great year for these companies because already we have finished numbers till December but FY15 should obviously reflect the full impact of the cement price increase and the kind of volume growth.

Hopefully, if elections bring about a stable government we would see lot of spending coming on the infrastructure side. Clearly, in the infrastructure there is definitely a good reasoning to say that the kind of valuations especially stocks like JK Cement or Birla Corp are throwing one could definitely nimble at the current valuations.