Among these states, Maharashtra is key for real estate as well as infrastructure spends. For a long time now, cement demand has largely been aided by government spending on infrastructure. On the other hand, one is yet to see any major improvement in cement demand from trade sales (retail). Lack of adequate demand has kept a lid on cement prices and the construction ban would restrict any improvement in prices at least for the remainder of the September quarter. That said, with this construction ban, investors in cement stocks should brace themselves for yet another quarter of dismal earnings performance.

Source: Mint September 05, 2018 04:18 UTC