Bank of America-Merrill Lynch upgrades its rating across cement stocks to 'buy' from 'neutral' or 'underperform', saying capacity will lag demand, while valuations are below previous up cycles.
The investment adds general elections in the next 18 months bode well for the Indian cement sector given the demand-GDP multiplier expanded in four out of the five previous election years.
Among the major cement manufacturers, Bank of America upgraded UltraTech Cement and Ambuja Cements to 'buy' from 'underperform.' * Among midcap stocks, Shree Cement was raised to 'buy' from 'neutral', while India Cements was upgraded to 'buy' from 'underperform.' (Source: Reuters)