Cement Sector Check: Busy Season Demand Kicking In, Price Hikes To Follow, Says 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 indicate the seasonal uptick in demand is playing out as expected, with volumes bouncing back in the last few weeks from the weakness seen in November (due to festive holidays).
While prices weakened in December (falling 3% month-on-month), we expect a recovery in the next few weeks as peak season demand sets in.
Cost inflation from higher fossil fuel prices (petcoke, coal, and diesel) should be offset, in our view, by price hikes, keeping margins in Q4 FY21 at elevated levels.
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.