Cement Sector Check - All Eyes On Demand Recovery: 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 cement's channel checks suggest industry volumes likely declined in mid-single digit YoY during October-November 2021 due to extended monsoon in many parts of the country and sharp decline in East volumes (on an elevated base and sand mining issues).
Average pan-India prices, which rose by Rs 20/bag in October 2021, remained broadly flat month-on-month and are likely up 8% YoY in Nov-21.
Average Ebitda/tonne during Q3 FY22 is still likely to remain broadly flat both QoQ and YoY as the impact of lower volumes and higher costs is likely to get offset by higher prices (~3% QoQ).
Given receding cost pressures, potential demand recovery remains a key trigger for the sector / stocks, in our view.
Click on the attachment to read the full report:
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.