The sustained increase in cement prices in the past one year has improved the return on investment for cement companies
Cement stocks have not been high on shareholder's popularity charts in the past few years. Now, it may just be time to take a re-look. A re-rating is expected on the back of a rise in demand and a brake on capacity expansion.
Since cement demand is largely price-inelastic, cement manufacturers are likely to benefit greatly from price increases -- especially when they are coupled with the strenuous cost-cutting measures.
This is particularly true of the Big Five of the business
