Jefferies starts India cement coverage

Jefferies has initiated coverage on the Indian cement industry with a buy rating on ACC, Grasim Industries, India Cements, UltraTech Cement, and hold rating on Ambuja Cements.

"We believe India Cements has the highest earnings upside from both volume and price surprises.... Among the large caps, Ultratech looks the best positioned without a significant exposure to south," said Jefferies in a report on Thursday.

The house says that it expects the next few years to be good for the cement industry, on the back of a recovery in demand, slowing capacity additions, improving pricing power and abatement in cost pressures.

Source: Reuters