Building Materials Q4 Results Preview - Moderate Performance Continue: Prabhudas Lilladher

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Building Material companies under our coverage universe are expected to report moderate revenue growth due to weak demand, increased competition and higher base. Additionally, a contraction in margins is expected due to increase in raw material prices and competitive pricing pressures.However, we anticipate healthy volume growth of +23% YoY in plastic pipe sector. Conversely, tiles and bathware sectors are likely to experience lower growth of 5-7% YoY. We expect coverage companies to register sales growth of 7.0% YoY, given correction in realisations in plastic pipe and MDF segments.With increase in raw material prices in woodpanel segment, previous year same quarter inventory gains in plastic pipe segment and lower sales in bathware, we expect margins to contract YoY (-140 basis points YoY) along with Ebitda/profit after tax decline of -1.2%/-7.2% YoY. We prefer plastic pipe companies on account of-healthy volume growth driven by plumbing and infrastructure segments,capacity enhancement,geographical penetration and expansion andstability in raw material prices. .Our top pick is Astral Ltd. and Supreme Industries Ltd. given revenue/Ebitda/profit after tax compound annual growth rate of 21.3%/26.1%/33.9% and 15.4%/18.7%/19.9% over FY24-26. Considering buoyancy in real estate, tiles demand with lag in real estate cycle will benefit Kajaria Ceramics Ltd. (being leader in the sector)..Click on the attachment to read the full report:.Paisalo Loan Case: High Court Hammers Hidden Proceedings, Sets Date For Arbitration.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Building Materials Q4 Results Preview - Moderate Performance Continue: Prabhudas Lilladher

Contraction in margins is expected due to increase in raw material prices and competitive pricing pressures.

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