Business News›Markets›Stocks›News›Monsoon is a cyclical headwind, but infra push and M&A are bigger tailwinds for long term investors: 5 cement stocks with upside potential of up to 44%
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Monsoon is a cyclical headwind, but infra push and M&A are bigger tailwinds for long term investors: 5 cement stocks with upside potential of up to 44%
Synopsis
Cement is a sector which has probably seen maximum mergers and acquisition in the last three years. Right from the second biggest player witnessing a change in ownership, to small players being taken over. With the monsoon coming, there is always a cyclical pressure on cement stocks, with the narrative being that in monsoon construction activity slows down. Even this week it played on the street, with cement stock witnessing a decline. But the question is whether this correction in stock price gives an opportunity to investors to get into a sector which is witnessing a fundamental shift in terms of how the demand curve pans out. Probably the answer is tilted toward yes for at least some players.
Come monsoon and one set of stocks which witness pressure is cement. This time also it is no different, the stocks have come under pressure. But a distinction has been made between a cyclical down trend also, whether the business and operating conditions are the same as that of the last few years or the situation is better. In the last three years the situation on pressure and cement offtake has been better. It has been seen that the decline in
ETMarkets.com
11 mins read
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