Cement Sector - Risk Reward Turning Unfavorable: Nirmal Bang
A worker sifts sand while laboring at an under construction site in Matia, Assam, India.  (Photographer: Prashanth Vishwanathan/Bloomberg)

Cement Sector - Risk Reward Turning Unfavorable: Nirmal Bang

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Cement stocks are hitting new highs as demand revival and stable pricing are keeping profitability and growth prospects elevated.

While demand revival has been better than most bullish expectations on the street, we believe that the market is neglecting a few near term risks to earnings and commodity nature of the business.

We also believe that current valuations are fair but leave nothing on the table for any unexpected risk to earnings.

Commodity stock multiples generally deflate on peak profitability but currently both profitability and valuations are surging at the same time, thus opening up the possibility that one of it should come off soon.

Click on the attachment to read the full report:

Nirmal Bang Cement Sector Update - 12 March 2021.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.