Cement Sector Check - Ebitda Could Be Lower In Q4: IDBI Capital

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..IDBI Capital Report.Our interaction with cement dealers suggests that the cement price at all India level has decreased marginally by 1% month-on-month in February 2024. In the last four months, there has been weakness in the cement prices. And thus, Q4 FY24 average cement price is down 4.5% QoQ (i.e. Rs 350/tonne). Though, volume is expected to increase by 8-10% YoY in Q4 FY24 but weakness in prices to impact Ebitda/tonne by Rs 60-70/tonne QoQ for the industry. Region wise, price weakness is highest for East. Energy prices have remained weak in Q4 FY24 and this to have positive bearing on profitability in H1 FY25E. Cement stock price performance is largely in-line with Nifty-50 in the last one month. Stock performance in mid cap has been better than large cap but given weakness in cement prices at dealer level, we expect large cap are better placed currently. And thus we retain our 'Buy' on ACC Ltd. and UltraTech Cement Ltd..Click on the attachment to read the full report:.Cement Q3 Results Review - Expansion In Capacities Accompanied By Strong Revenue, Margin Growth: DRChoksey.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.

Cement Sector Check - Ebitda Could Be Lower In Q4: IDBI Capital

Stock performance in mid cap has been better than large cap but given weakness in cement prices at dealer level, we expect large cap are better placed currently.

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