7 Cement Stocks To Buy & Hold In November, This Year, Check Target Price For High Gain

Emkay Global informs that average pan-India cement prices increased ~1% MoM (~Rs3-4/bag) in October, 2022. Additionally, prices rose 2-3% MoM in the East and South and around 1% MoM in the West; while declining by 1-2% MoM in the northern and central regions. Cement companies are attempting price hikes of Rs. 10-30/bag across regions in November, 2022, and absorption of the price hikes will get revealed over the next few days. Here 7 stocks have been mentioned, as suggested by Emkay Global to buy and hold.

The brokerage firm continues to favor UltraTech and Shree Cement among large caps cement stocks.

Company	Rating	Current market price	Target price
UltraTech	Buy	Rs. 6,896	Rs. 7,100
Shree	Buy	Rs. 22,814	Rs. 23,300
ACC	Buy	Rs. 2,478	Rs. 2,625
Birla Corp	Buy	Rs. 974	Rs. 1,200
Sagar Cements	Buy	Rs. 207	Rs. 220
Ambuja	Hold	Rs. 559	Rs. 480
Dalmia	Hold	Rs. 1,745	Rs. 1,600

Demand is expected to improve in upcoming weeks, with all major festivals ending and given the onset of a busy construction season. With the financial-year change (from December to March) by ACC and Ambuja, volume push by these companies is likely to be limited in December; this is a positive for pricing trend in the near term, Emkay Global mentioned.

However, there are some downsides to cement stocks. The brokerage firm stated, "Our medium-term upcycle thesis remains largely intact, albeit with a more gradual reset in profitability (RoIC), underpinned by improving demand-supply dynamics, better price discipline, cost optimization, and de-risking efforts. Key downside risks are lower-than-expected demand growth, and any negative outcome from the CCI investigations."

Disclaimer

The above stock was picked from the brokerage report of Emkay Global Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.