Cement’s Demand Has Improved, But Pricing Remains Muted: 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 cement demand is playing out, with volumes bouncing back strongly from the weakness seen in the first few weeks of January.
While prices have improved 1–2% month-on-month in North and West, average pan-India price is down 2% QoQ thus far in Q4 FY21 (up 1% YoY).
Cost inflation is also a concern in the near term as petcoke, coal, and diesel prices are up 71%, 4%, and 26% YoY, respectively. Therefore, we expect margins to decline sequentially for the industry, but they should still be higher YoY.
We expect our coverage Ebitda to grow more than 20% YoY in Q4 FY21, driven by ~18% YoY growth in volumes.
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.