BQ Prime'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 BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
We forecast a healthy 13.3% YoY revenue growth for the cement companies under our coverage universe led by 12.8% YoY increase in volume and a marginal 0.5% rise in realisation.
Our channel check indicates a strong demand in Eastern and Central region while weaker demand in Southern part of India. Even though September saw multiple price hikes led by the Eastern region, average cement prices for the quarter are likely to increase only marginally in Q2 FY24.
Also, Ebitda is likely to benefit from lower power and fuel costs due to the lag effect while recent surge in coal and petcoke prices are likely to impact margins negatively from Q3 FY24 onwards. Overall, Ebitda/tonne is likely to improve by 50% for our coverage universe to Rs 932.
We forecast volume/revenue/Ebitda/profit after tax growth of 12.8% / 13.3% /68.7%/105% during Q2 FY24.
Our preferred pick remains Ultratech Cement Ltd. and ACC Ltd. in the sector.
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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
