Investment bank Daiwa Securities initiates India cement sector at Positive. "We see cement stocks as long-term plays, and believe they face some near-term headwinds," it says in a report, adding "a recovery in demand and greater discipline among industry players should enhance their pricing power."

Daiwa expects cement capacity additions to slow over the next three years, after the industry added about 120Mta of capacity over the past four years. The house also finds cement companies’ balance sheets much stronger now than during the previous downcycle, implying lower financial leverage.
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