With the third quarter earnings season already upon us, Navin Sahadeo, research analyst at Edelweiss shares his views on what one can expect from the cement sector.

The house is upbeat on UltraTech Cement, a largecap stock that has seen a consistent gain in market share, he said.

From the midcap space, they are upbeat on JK Cement on back of a strong performance from them. Year to date, the company has shown highest growth in realisations said Sahadeo in an interview with CNBC-TV18.

Moreover, JK Cement is benefiting from price hikes in the northern region. Prices on year on year basis are up over 12 percent but for the company realisation growth has been 17-18 percent, he said. "Therefore, JK will continue to show a strong traction in earnings and their new capacity is also about to get commissioned. So, going ahead, they will show strong volume growth as well,” he added.

According to him, Shree Cement has moved up on back of expectations of positive results but he does not see any material upside for the stock from here on.

Sahadeao said Shree Cement is amongst the most richly valued stock but for a significant upside from here on, he would go with midcap names because over the next 3-4 months there would be a lot of positive commentary from them, which would help narrow the valuation gap between midcaps and largecaps.