Cement Prices Rise; Earnings Upgrade To Continue: ICICI Securities
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ICICI Securities Report
Our channel checks suggest average pan-India cement prices rose approximately 4% month-on-month (Rs 15/bag or Rs 300/tonne) in the first week of March 2021 backed by strong demand and the need to mitigate cost escalations.
While West and East regions saw average price hikes of Rs 10-20/bag, prices rose by Rs 5-15/bag in North and Central regions and Rs 20-30/bag in South.
Dealers indicate companies may announce further hikes in the coming days to ensure sustainability of the current hikes, given year-end pressures to achieve volume targets.
We believe recent price hikes would likely alleviate investor concerns on sustenance of margins amid rising cost pressures.
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