Cement Sector Check: Busy Season Demand Kicking In, Price Hikes To Follow, Says Motilal Oswal
Indian labourers unload bags of cement from a truck in Gurugram, India (Photographer: Adam Ferguson/Bloomberg News)

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.

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Motilal Oswal Cement Sector Update.pdf

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