The cement sector has a long way to go before it begins to expand capacity or sees a turn in the investment cycle, Dhananjay Sinha, head of research, economist and strategist at Emkay Global Financial Services Ltd., told BloombergQuint.
While earnings reported so far by UltraTech Cement Ltd. and ACC Ltd. beat street estimates, the cement sector needs a complete housing sector revival which will lead to peak utilisation levels and prompt companies to expand capacity, Sinha said. That will take a few years, according to him, and in the interim, the sector will continue to see consolidation and ramp-ups.
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