Morgan Stanley has downgraded the Indian cement sector. Jeez! the downgrade has been very severe and the sector is likely to underperform in short-medium term.
ACC:
The report said government intervention has rendered the pricing power meaningless. They further downgraded the stock from Overweight to Underweight and set a new price target of Rs 598, implies a downside of 23%.
Gujarat Ambuja Cement:
Same reason as above and stock downgraded to Underweight with a price target of Rs 84.
Grasim Industries:
Same reason and stock downgraded to Underweight with a price target of Rs 1,783.
Ultratech Cement:
This is the worst hit company and the stock has been downgraded to Underweight with a target price of Rs 554.