Indian infrastructure scenario is picking up momentum as government intends to build thousands of kilometers of roads and highways over the coming five years at a cost of about Rs 7.00 lakh crore, on the flip side of it, investors may be on the watch out for investment opportunities in the sector.
Moreover, the cement industry at present go through a consolidation phase, with large players like UltraTech Cement which acquire the cement plants of JP Associates for Rs 16,189 crore. In addition, the cement industry is likely to grow above 5 pct Compound annual growth rate between 2017 and 2020 fiscals.
Further, there are continuous initiatives taken by the government such as affordable housing projects, interest rate relief on home loans, smart city projects and above all Housing-For-All through Bharatmala projects are expected to create huge demand in infrastructure sector.
In view of the above the prospects, it could be the right choice for market players to pick frontline cement stocks such as ACC Ltd, UltraTech Cement Limited, Ambuja Cement, Indian Cements and many more to generate good returns in the long term.
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