Cement Q3 Preview- Recovery On The Horizon Says Systematix; Bets On ACC, UltraTech, Sagar Cements As Top Picks

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Systematix Report

The cement industry is showing signs of recovery after a sluggish H1 owing to adverse monsoons, delays in infrastructure fund allocations, and seasonality.

Cement demand has begun picking pace in Q3 as cement prices inch up after several months of lull, driven by pent-up demand. Overall, we expect volume growth for companies under our coverage to be in the range of 8-9% in H2, supported by a rebound in both trade and non-trade segments.

Rural demand has also seen gradual improvement, aided by better agricultural output and an increase in construction activity.

We expect Ultratech and ACC to report double digit growth at 10.2%/14.9% YoY while Shree Cement, Dalmia and JK are likely to report slower growth at 3.9%/ 4.4%/ 6.1%.

We factor in volume/ revenue/ Ebitda/ PAT growth of 8.4%/ -0.6%/ -22.5%/ -36.6% for Q3 FY25.

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