Cement - North & Central continue uptrend, AP bounces back - Emkay

- All India prices at Rs299/bag +1.7% mom. Price uptrend in Northern & Central regions continue while bounce back in AP leads to Southern average increasing 4% mom.

- However prices in western region declined 2.9% mom with price cuts of Rs10-20/bag while prices in eastern region remain flattish owing to low demand in festive season.

- Q2FY12 cement earnings performance for Emkay universe below est- However Oct price hikes in North & Central regions bring positive surprise. AP also see sharp price hike driving EPS upgrades.

- Prefer ACC as steep valuations leave little room for further out-performance for Ambuja & Ultratech. Remain positive on Grasim, Shree Cements and Madras Cements.

Source : Equity Bulls

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