Buy Cement Companies Stocks

Buy Cement companies stocks as in 31st GST meeting, govt may reduce tax rate on cement companies. Currently it is 28% which can go down to 18%. This can give huge boost to cement companies.
This guess news is already out. But, we have three days left. Meeting is on Saturday 22nd, 2018.

Also, Cement companies are trading at low valuation. Crude Oil price is going down. It is not at dangerous level as predicted. Demand is rising. So, many things are telling us to load cement companies.

Cement companies macros are in better position now. Should be bought for few months.

HeidelbergCement, NCL Ind, and Deccan Cements should be a good buy.

NCL Industries: Value and Growth Stocks

NCL Industries manufactures Cement and PreFab material. NCL Industries is the only manufacturer of Cement Bonded Particle Boards (CBPB) in the country, marketed under the brand name Bison Panel.
The board is used for false ceiling, Wall, and partition.
Board division is doing good and with increase demand in construction activity, board business will improve.

78% of Turnover comes from Cement.
Board business gives 13%.
Hydel Power contribute 2% of total turnover.

Before Bifurcation of Andhra Pradesh, business was hit due to agitation etc. After bifurcation of state, lots of construction work need to be done. Both states are trying to do good in business front. This company has done very good in recent quarters. In past, it was in loss.

Recently, insider buying has happened aggressively. Kalidindi Ravi is Managing Director of NCL Industries has acquired major chunk recently (Mar and Apr). He hold 6.8% of shares now. May 26, 2015:
Recently Promoters has allotted 17 Lakhs equity shares at premium of Rs 12 according to resolution passed in Apr 2014.

CMP: Rs 76.25,
PE = 35,
P/S = 0.46,
P/B = 1.66.

Risk: Pledged shares and if it cannot deliver good quarters as it done recently.