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Cement: Beats estimate; Sustainable earnings upcycle a year away   -
Cement: Beats estimate; Sustainable earnings upcycle a year away  
Prabhudas Lilladher | Published: 21 Nov, 2017  | Source :

Cement companies in our coverage universe reported earnings above our expectation. Beat in earnings was led by higher than expected realisations and lower costs due to elimination of local taxes in GST. Sales volume for our coverage universe (60% share in aggregate volumes of the listed cos) grew 9.5% YoY (on a base of -1%), ahead of 5% growth (on a base of +7%) in rest of listed space. Driven by low base and increased spending by Govt on infrastructure development and affordable housing, volumes is expected to grow at 8‐9% in rest of the year despite weakness in real estate sector. We continue to like Heidelberg cement (HIEM) and JK Lakshmi (JKLC) on the back of attractive valuations and strong earnings outlook.

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.