Cement companies are expected to report structurally positive results for the third quarter (Q3) of the current financial year. Motilal Oswal has listed Ambuja Cements, UltraTech Cement, and JK Cement as their top picks in the cement sector. The research firm expects a significant improvement in earnings per share (EPS) growth for these companies due to factors such as higher volumes, better realizations, and improved operating leverage.
Ambuja Cements is expected to report a strong set of numbers driven by its cost-saving initiatives and improved demand from the government infrastructure projects. UltraTech Cement is likely to benefit from its large-scale operations and its ability to pass on the input cost inflation to customers. JK Cement is expected to report a significant improvement in its operating profit margin due to its cost optimization initiatives and higher volumes.
Motilal Oswal has maintained a positive view on the cement sector, citing its robust demand fundamentals, improved pricing power, and the likelihood of further cost savings. The research firm expects the sector to report a double-digit EPS growth in Q3, driven by the structural improvements in the industry.