We maintain our cautious stance on most large caps, given rich valuations. Remain constructive on Birla Corp and Sanghi Industries. Cement prices are largely flattish YoY, and declines are seasonal in nature. However, continued sand shortages in states which contribute ~20% of cement demand may weigh on the volumes of cement companies in 2QFY18. Any delay in restoration of pet-coke supplies from US Gulf Coast would weigh on cement stocks.