Cement Sector Check - All Eyes On Price Hikes: ICICI Securities
A worker unloads a sack of cement from a freight train in Mumbai, India. (Photographer Kuni Takahashi/Bloomberg)

Cement Sector Check - All Eyes On Price Hikes: 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 cement demand likely grew in mid-single digit YoY during January 2021, while average pan-India prices stood broadly flat month-on-month (still up 4% YoY).

Q3 FY21E earnings are better than our/consensus estimates due to higher realisation and lower than expected costs escalations leading to further earnings upgrades.

Recent Budget 2021 puts increased thrust on higher government spend on infrastructure which could boost demand growth.

Key trigger to watch out would be seasonal price hikes during first half of calendar year owing to peak construction period and also necessitated this time by costs increases (to be reflected in H1 CY21).

Click on the attachment to read the full report:

ICICI Securities Cement Monthly_Feb21.pdf

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