Cement Sector Check - Strong Demand Recovery; Prices Would Improve: 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
Cement demand has started picking up from the second half of December 2021 after the volume decline in November 2021. We estimate that sales volume in Dec-21 should be up over 20% month-on-month (0-3% YoY). There should be a YoY improvement in demand in Dec-21 across regions (excluding East India).
We expect industry volumes to decline by 5-7% YoY in Q3 FY22 due to lower demand in Nov-21. We believe that the volume decline in Nov-21 was led by:
sand crisis in East India and a few pockets of Uttar Pradesh, which was resolved from the first week of Dec-21, and
an auspicious marriage season after the Covid-19 outbreak last year.
Demand should improve further from January 2022, with a pickup in government Infrastructure activities.
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.