Look forward to Ambuja, Shree Cement and J K Cements in cement space: KSEMA Fincon Ltd
Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd, in a chat with ET Now talks about the cement pack.
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| Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd, in a chat with ET Now talks about the cement pack.
Talking about cementing companies - probably an Ultratech Cement or for that matter smaller ones like Dalmia Cement. Would this be a time to buy them considering that there are some amount of cost pressures coming on them?
The sense that we are getting is that yes the cost pressures are there. The coking coal prices have gone up, the input material has gone up by around 30% to 40% for the cement companies.
Also the companies don’t have the price leverage advantage because there is enough supply in the market so companies would not be in a position to increase the prices any further barring couple of north India companies like Shree Cement or an Ambuja Cement which has opened couple of clinker, has commissioned new clinker plants which would mean that their volumes would shoot up.
So my sense is if we are looking at cement stocks then the stock to look forward is Shree Cement, J K Cements and Ambuja Cements.
Talking about cementing companies - probably an Ultratech Cement or for that matter smaller ones like Dalmia Cement. Would this be a time to buy them considering that there are some amount of cost pressures coming on them?
The sense that we are getting is that yes the cost pressures are there. The coking coal prices have gone up, the input material has gone up by around 30% to 40% for the cement companies.
Also the companies don’t have the price leverage advantage because there is enough supply in the market so companies would not be in a position to increase the prices any further barring couple of north India companies like Shree Cement or an Ambuja Cement which has opened couple of clinker, has commissioned new clinker plants which would mean that their volumes would shoot up.
So my sense is if we are looking at cement stocks then the stock to look forward is Shree Cement, J K Cements and Ambuja Cements.
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