ADVERTISEMENT

Cement Outlook 2022 - In Uncertainty Lies Opportunity: ICICI Securities

Cement Outlook 2022 - In Uncertainty Lies Opportunity: ICICI Securities

<div class="paragraphs"><p>A worker holds up processed cement at a factory. (Photographer: Dario Pignatelli/Bloomberg)</p></div>
A worker holds up processed cement at a factory. (Photographer: Dario Pignatelli/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

Despite an underperformance in H2 CY21 owing to concerns on sharp cost escalations and muted demand recovery, most cement stocks outperformed for the full-year CY21.

We believe consensus FY22-23E Ebitda may be downgraded by less than 5% due to weak demand during Q4 CY21, but that seems adequately priced in.

News flow on demand / pricing is likely to improve from mid January 2022 as peak construction period sets in. Coupled with receding cost pressures and scope for margin expansion, risk-reward seems favorable, in our view.

Besides, dividend payout across companies may increase given strong balance sheet / cashflow generation.

Click on the attachment to read the full report:

ICICI Securities Cement Outlook 2022.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.