Amid a continuing demand slump, cement prices have rebounded by Rs 70-100/bag in North India and Rs 10-15/bag in select western markets this month, while dropping by Rs 10-20/bag in southern markets. This should boost realisations for north and west-based players (SRCM, JKLC) by 3-4% QoQ in Q2FY16. Cement stocks appear attractive in the aftermath of the recent correction and are pricing in the weak demand environment – BUY on dips with a 2-3-year horizon. Top picks: UTCEM, ORCMNT.
