Cementing growth: 5 mid & smallcap cement stocks with an upside potential of up to 29%

While large cement companies might be in the news for one or the other reason, it is the small and midcaps which have shown better than expected performance in Q4. Some of them tend to get ignored because they are regional companies or their overall capacity is not very high. However, from the stock market perspective one has to look at the overall picture. We take a look at what analysts are saying across midcap cement companies. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists down stocks which fulfill the various criteria as specified into the algorithms & filters

In case of cement the prices are driven by domestic demand and supply dynamics and input costs matrix. With the continued focus on infrastructure, most of the small and mid-cap companies have been able to improve the quality of their balance sheet in the last nine years. We take a look at what analysts are saying across small and midcap cement companies. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists down stocks which fulfill the various criteria as specified into the algorithms & filters.

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Cement has been a sector where most of the analysts have been caught off guards. The stocks have done well and a large number of analysts have been sticking to their stands that pricing and capacity utilization is an issue. What they probably ignored was the fact that any industry which has been facing headwinds for a long time tends to sort the issues and few players are able to make a comeback as consolidation takes place. Pretty much what we have seen in power. Due to government focus on infrastructure for the last nine years, a number of cement players have been able to improve their balance sheets and also become operationally efficient. With the policy continuity there is a high probability that we may see a similar trend in coming years.

With the focus of government policies increasingly turning favourable toward the manufacturing sector, some of the capital goods and engineering companies are making a comeback on the analysts list.

As the nifty is on a path of recovery, some segments of mid-cap stocks started to see recovery. From a logistics player to the first new age company which got listed close a decade ago and now belongs to India’s largest private sector group. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.