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Cement: Cautious View
Investors are recommended to book profit on the cement counter as this sector looks weak on the following reasons:
- Cement prices are coming down on all India basis with maximum fall observed in South India (E.g. Rs 170 per 50 Kg bag in Vishakapatnam).
- Our discussion with various industry experts suggests us that cement prices seems to have peaked out with supply overhang resulting in lower capacity utilization.
- Monthly dispatches of an industry are coming down on MoM basis as indicated below, from June 2009 to Sept 2009, the sector has seen a fall of 25% on dispatches.
