Cement sector | What are pain points for investors?

We advise strong caution on UltraTech and Shree Cement as the entry of Adani poses the biggest risk to their market share as well as super-rich valuation

Sachin Pal
June 14, 2022 / 11:10 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

After the covid disruption, the cement sector had a prolific and stupendous run. Majority of companies delivered stellar earnings that represented the largest increase since the beginning of the down cycle in 2018. However, the cyclicality of the sector is fast catching up as things have slowed down considerably in the last couple of quarters. Looking ahead, the sector is likely to remain under pressure. The initial signs of a down cycle are worrying with increased competition is likely...