In fiscal 2013-14, cement industry will witness a sharp recovery in cement prices on improving supply-demand dynamics and the government action to fasttrack infrastructure projects, say analysts.
Deutsche Bank believes cement companies such as UltraTech Cement and Shree Cement that have potential to increase capacity and have a bigger presence in western and northern India will witness disproportionate benefits.
Morgan Stanley maintains an ‘attractive’ view on the sector, and recommends investors to buy cement stocks on weakness because on expectations of easing capacity addition and pickup in cement demand.