Cement Prices Rise; Earnings Upgrade To Continue: ICICI Securities  
Small rock, pumice, and sand, different types of block material, sit in a pile before being mixed into cement during production. (Photographer Meg Roussos/Bloomberg)

Cement Prices Rise; Earnings Upgrade To Continue: ICICI Securities  

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

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.

Click on the attachment to read the full report:

ICICI Securities Cement Update_Mar21.pdf

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