What Is The Outlook For Cement Sector? | Portfolio Allocation With Sanjay H Parekh | Top Sector Bets

Sanjay, what are your thoughts on the entire cement space? I see two biggest names in your portfolio, Ambuja and Grasim, but you know one is turning an acquirer in order to reach their massive goals they set for themselves 5-7 years ahead on, on the capacity addition front, obviously that cannot come completely organic. So inorganic route has to be taken. The other one has beyond cement a positive on Vodafone resurrecting going towards jewelry and other stuff. So is it the cement here you are kind of playing there? Or what exactly is the plan, the business model? Yeah, so one is cement in the near term may be weak for this quarter because first two months were weak. June has been better, but overall, structurally with this emphasis on infrastructure, the large players very clearly will be beneficiaries, they will be acquirers. So we participated through Ambuja, you know as the very aggressive on acquisitions and they're doing it very smartly. They're not over paying for it and then the cost lever with all the synergies of the group, they are going to significantly better it. So that is one area where we are very positive over next three to five years and we've seen that in the recent activations and even the efficiencies that they have built on the cost side while it is not cheap now there is valuations are rich now, but I think you know you need to hold on to such quality stocks where the growth is going to be very aggressive. And the management is really on a top of it in on all multiple fronts. But the other player Grasim we own where of course we benefit through Ultratech, which is a very large ownership for them. And then you know of course the paint business, we believe they have a right to win. It may take a little longer, but they still would really appreciate more of as they execute. And then of course the VSF and chemical piece are on a on a low in terms of EBITDA, but I think on a cyclical levels they could only get better from yours slowly. So it's if you take the whole SOTP, even taking a discount and if you take three to five, you even from here on, you know, we're very positive on that name. So that is are you one second. If you like this video then like, share and subscribe to ET Now.