Despite a robust demand trajectory, 2018 was not a good year for the cement sector on account of pricing pressure. The stock of cement major Ultratech Cement (UTCEM) declined 7 per cent in 2018, underperforming a 6 per cent rise in the Sensex.
Analysts believe that the stock is unlikely to see any significant upswing, even in the near term, as UTCEM is unlikely to exercise pricing power in spite of its leadership position.
Besides lower cement prices even after the festive season, demand is being driven mainly by the low-profitable and highly competitive non-trade segment. UTCEM is unlikely to undertake sharp