Cement prices slide even in seasonally strong period - Emkay

- Pricing power remains weak as prices continue to slide even in seasonally strong period. Andhra prices dip to break even levels of Rs180/bag suggesting cracks in pricing discipline

- Sector starts FY14 on a weak note- avg prices at Rs280/bag down Rs15/bag or -5% mom & 8% yoy in Apr-13. Sharp 3% mom cuts seen in south & central region

- Cement demand remains extremely weak. Estimate cement dispatches to have grown of 3% yoy in Q4FY13 against a healthy 9% growth seen in Q4FY12. FY13 demand growth ~5%

- Downgrade risk to earnings elevated in the backdrop of weak pricing power. Retain Reduce on ACC. Hold on Ambuja, Ultratech & Shree. Remain positive on Grasim & Madras Cement.

Source : Equity Bulls

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