Cement prices have corrected in multiple regions during October-November, on a demand slowdown vs. expectations of a pick-up post the festive season. Prices continue to decline in north/central India (following Q2 trends), but are holding up in the west. ''We think sustained volume momentum would be the key to support realisations. We recommend accumulating stocks on related weakness and maintain our long-term growth outlook on the sector,'' said Religare Institutional Research.

''While cement majors have managed to arrest a significant decline in prices during monsoon (party due to good volumes), we believe sustained volume momentum would be essential to support realisations. Given the demand/price momentum expected in the next 2-3 years (led by on-the-ground government investments), we maintain our positive outlook on the sector and forecast a demand CAGR of 9-10% over FY14-FY17 supporting strong pricing/profitability,'' it said.

''Any weakness stemming from a moderate Q3FY15 would be an opportunity to accumulate cement stocks. We retain Ultratech/Shree Cement as our top picks among large-caps and Orient Cement/SNGI among mid-caps,'' it added.

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