Cement shares extend gain: Shree Cement, Birla Corp rally over 10% in 1 wk

After a period of meaningful underperformance/valuation de-rating in the second half of last year, analysts at JP Morgan see the case for a positive trade for the stocks over the next few months.

Shares of cement manufacturers continued to trade higher for the fifth straight day on Monday on expectations of demand recovery, as analysts believe that risk/reward for the sector looks favorable at current levels.

Shree Cement, Ramco Cement, Birla Corporation and Orient Cement have rallied more than 10 per cent in the past one week. On the other hand, UltraTech Cement, Ambuja Cements, ACC, JK Lakshmi Cement, India Cements, Star Cement and Heidelberg Cement were up in the range of 5 per cent to 9 per cent during the same period. In comparison, the S&P BSE Sensex was up 3 per