Cement Sector Check - Another Round Of Price Hike To Offset Rise In Raw Material Cost: Motilal Oswal
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 Sector Check - Another Round Of Price Hike To Offset Rise In Raw Material Cost: Motilal Oswal

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.

Motilal Oswal Report

Our channel checks suggest that the industry has hiked prices again in April 2021, after the hikes in March 2021, to pass on the cost inflation.

Prices have been raised by Rs 20-30/bag month-on-month in East India and by Rs 5-10/bag in other regions.

Demand remains strong, particularly in East India, where it is growing by over 10%, which should help absorb these hikes.

The hikes should also alleviate concerns on near-term margins from the sharp commodity cost inflation – petcoke, coal, and diesel prices are up 109%, 54%, and 34% YoY, respectively –seen in the last few months.

Click on the attachment to read the full report:

Motilal Oswal Cement Sector Update.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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.