Cement Sector Check - Price Hikes, Cost Control Amid Strong Volume Growth Keep Our Optimism: Systematix

Systematix Research Report

Cement volume under our coverage universe saw a sharp uptick in Q2 FY24 which grew 14.4% YoY. The Ramco Cement Ltd., JK Cement Ltd., Shree Cement Ltd. and UltraTech Cement Ltd. surprised us positively while ACC Ltd., Ambuja Cements Ltd. and Dalmia Bharat Ltd. disappointed.

Our channel check suggests a sharp dip in October and November so far owing to both-

1. sharp price hikes, and

2. festive seasons.

However, sentiments across regions are very strong and we expect demand growth to remain strong post the festive season and post-general election.

The pace of government’s spending and huge demand from the real-estate market is expected to remain robust. While part of the price hikes is sustained, some pockets witnessed a roll back and any further price hike is unlikely to be absorbed by the market in the near term. The sustained price hike is to the tune of 4-5% on an average basis which would result in robust profitability in the coming quarters.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.