Cement stocks have rallied ~40%/13% in trailing 12M/3M period given expectations of strengthening volumes, weaker capacity additions and prolonged periods of strong pricing. Large cap cement stocks now trade at 10.5-16.5x FY18 EV/EBITDA and these valuations do not have any room for disappointments. We remain focused on select midcaps (Sanghi, Birla Corp). We have increased the target prices for stocks, largely driven by higher multiples