Morgan Stanley bets on UltraTech Cement and 1 more stock as medium term outlook positive for cement sector
“Medium term outlook remains constructive, and margin expansion should be led mainly by cost improvement,” said the brokerage in a note.
Global brokerage Morgan Stanley expects demand momentum to continue in the cement sector over the next few months, supporting sustained hike in cement price. “Medium term outlook remains constructive, and margin expansion should be led mainly by cost improvement,” said the brokerage in a note.
In this backdrop, here is the brokerage's likely take on different listed cement stocks:
Morgan Stanley on ACC
The brokerage has downgraded the stock to 'Underweight' from the earlier 'Equal Weight'. Also, at the same time target price has been cut to Rs 1,670 from Rs 2,510.
Morgan Stanley on Shree Cement
Upgraded the stock to 'Equalweight' from 'Underweight', target price raised to Rs 26,950 from Rs 24,200.
Morgan Stanley on Dalmia Bharat
The brokerage reiterates 'Underweight' stance, with the target price cut to Rs 1,630 from Rs1,750.
Morgan Stanley on Ambuja Cements
The brokerage maintain 'Overweight' call, target price cut to Rs 590 from Rs 675
Morgan Stanley on Ultratech Cement
The brokerage maintains 'Overweight', with the target price raised to Rs 13,650 from Rs 13,620
Cement stocks recent performance
Of late, cement stocks have staged a mixed show reflecting broader market trend as well as investor sentiment towards the space.
JM Financials take on Cement companies Q3FY25 performance
Of the coverage companies’ (comprised ~65% capacity share), aggregate EBITDA
declined 26 per cent on-year, nevertheless, it increased 27 per cent sequentially on a low base led by marginal improvement in realisation sequentially and better operating leverage.
Taking note of cement companies performance, JM Financial expects industry profitability to improve further in 4QFY25 on the back of higher exit prices and better operating leverage led by peak seasonal demand.