Citigroup remains cautious on India’s cement sector, saying stocks are ignoring oversupply issues and are running ahead of near-term concerns. Cement majors have outperformed the benchmark index in the last six to 12 months, with the biggest out performance in the past three months, by 23%-29%, largely on an upturn in prices due to volume cutbacks by producers, the house says.
However, prices are set to fall in light of slower demand growth with sluggish infrastructure spending and a surge in capacity, the house warns.
