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


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