Favourable Q2 results expected
Indian Stock market analysts expect cement, automobile and banking stocks to post good results for the July-September quarter. In large part, their expectations are based on the fact that companies in these sectors have paid higher advance tax in September compared to the previous year.
Advance tax is collected by the income tax department in four parts each year. As a thumb rule, companies pay advance tax based on what they expect their performance would be like. While the rule is not absolute and there are exceptions to the norm, these numbers are usually a good indicator of what lies ahead.
By this yardstick, cement companies are expected to post results much better than most sectors. This assumption gains credence considering that during this quarter, price realisation for them jumped 30%. They also reported a 9-10% growth in volumes. The question now is, what kind of numbers do analysts expect each company in the sector to post.
Published under Cement News
