“One should get into large as well as the mid cement companies. After a good runup, we saw a good correction in the last week. We have seen most of the cement stocks corrected 6% to 7% on an average and offers good value. I would advise buying cement stocks at this juncture,” says Rahul Shah, VP-Equity Advisory,
What is your take on cement stocks?
Cement looks quite interesting. It is one of the sectors where one should be invested into at this juncture. There are two-three things to consider about the cement play. One obviously is the price hike we have been seeing and they should continue going forward as well. Second, we will be seeing a double digit growth in cement companies and thirdly, I feel usually the Q3 and Q4 are better for the cement companies and we have seen infrastructure activities as well as the real estate activities which are there and this is also going to benefit the cement sector.
What is your take on cement stocks?
Cement looks quite interesting. It is one of the sectors where one should be invested into at this juncture. There are two-three things to consider about the cement play. One obviously is the price hike we have been seeing and they should continue going forward as well. Second, we will be seeing a double digit growth in cement companies and thirdly, I feel usually the Q3 and Q4 are better for the cement companies and we have seen infrastructure activities as well as the real estate activities which are there and this is also going to benefit the cement sector.
I think one should get into large as well as the mid cement companies. After a good runup, we saw a good correction in the last week. We have seen most of the cement stocks corrected 6% to 7% on an average and offers good value. I would advise buying cement stocks at this juncture.
What is your view on Bharat Forge? It has had a lot of promise but it has not lived up to it. It has got defence, manufacturing, cyclicality and engineering but in the last couple of years, Bharat Forge has been on the receiving end. Why is that?
In the last two years, the stock has done not so great and vis-à-vis the kind of rally we have seen in the markets, in terms of numbers last year, the numbers were not so great. But now in the last couple of weeks, when they had their analyst meet, the management has guided a strong commentary on how all the segments did. They believe that defence could be the flavour as it is in the markets right now obviously and other pockets as well.
So the stock has rallied from the Q2 numbers and is already up 15% post their Q3 numbers. One should wait and the risk to reward would not be favourable but at any selloff, one should build it up in Bharat Forge.
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