India’s cement makers to post robust EPS growth

India’s cement makers are likely to post robust earnings per share growth of up to 24 percent over financial year 2016-17 to FY19E, according to a research note by Deutsche Bank. It also expects cement demand to improve sharply by 9-10 percent year-on-year in the second half of the current financial year. So far this year, the demand has “better-than-perceived” with “margins seen rising sharply” for the cement companies, the note said. “FY17 volume grew 3 percent versus perception of a decline,” it added. “Our channel checks suggest significant rise in industry realisation (plus 8 percent QoQ) and margins (25-30 percent) in first quarter,” the note said. Deutsche Bank’s top picks from the sector remain Shree Cement and Ramco Cements.