ICICI Securities: Building Material Outlook CY21- On Comeback Trail
A worker walks over pipes in Amargarh, India. (Photographer: Dhiraj Singh/Bloomberg)

ICICI Securities: Building Material Outlook CY21- On Comeback Trail

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.

ICICI Securities Report

The organised building material sector is likely to be on a strong comeback trail with branded companies expected to report healthy volume growth/earnings in CY21 driven by: 1) low base of last year, 2) strong pent-up demand in renovation/refurbishment segment, and 3) impressive pick-up in secondary sales in real estate sector post Covid.

In the branded categories space, ICICI Securities expects growth recovery in CY21 to be led by:

1) the plumbing pipe segment (expectations of accelerated consolidation in Polyvinyl Chloride/Chlorinated Polyvinyl Chloride pipes post Covid),

2) tile segment (driven by impressive market share gains from Morbi players who are incrementally focusing on exports post Covid) and MDF (on the back of higher demand for modular furniture vs organised carpentry, and

3) expected increase in modular furniture shipments with India likely becoming a manufacturing hub replacing China.

Click on the attachment to read the full report:

ICICI Securities Building Material Outlook 2021.pdf

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