ADVERTISEMENT

Building Materials Q3 Earnings Preview: Most Categories May Recover Beyond Pre-Covid-19 Levels, Says ICICI Securities

Building Materials Q3 Earnings Preview: Most Categories May Recover Beyond Pre-Covid-19 Levels, Says ICICI Securities

Workers lay pipes and pour concrete in a construction site in Delhi, India. (Photographer: Ruhani Kaur/Bloomberg)
Workers lay pipes and pour concrete in a construction site in Delhi, India. (Photographer: Ruhani Kaur/Bloomberg)

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Volume recovery for major branded building material categories may sustain (in fact accelerate QoQ) into Q3 FY21 driven by -

1. impressive growth traction in secondary real estate market,

2. pent-up demand seen in renovation / refurbishment segment and

3. market share gains (in categories like plumbing pipes and tiles in particular).

We, thus, foresee categories like plumbing pipes, medium-density fibre, adhesives and construction chemicals, tiles and plywood to recover beyond pre-Covid-19 levels in Q3 FY21, while laminate and sanitaryware categories may recover fully with a quarter lag.

Click on the attachment to read the full report:

ICICI Securities Building Material Q3FY21 Preview.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint 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 BloombergQuint.

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