We have been neutral on cement sector for some time now as we believed that moderate demand growth coupled with benign costs should aid decent earnings growth but excessive valuations and supply overhang will curtail the upside. Over the past 3 months, cement stocks have corrected and valuation multiples have come off from highs to reach long term average. However, we are turning cautious on the sector now as we forecast cement demand to contract for the industry in FY20 which will have negative repercussions on pricing and in turn on earnings. We have cut EBITDA forecast for our covered companies by 5-12% for FY21 to factor in...