ICICI Securities: Cement Demand Improves In September 2020; Prices To Follow Soon 
A pile of cement lies on builders slab. (Photographer: Chris Ratcliffe/Bloomberg) 

ICICI Securities: Cement Demand Improves In September 2020; Prices To Follow Soon 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Our channel checks suggest the cement industry may post positive volume growth in September 2020 after six consecutive months of YoY decline, led by sharp demand uptick in East and aided by YoY favourable base of South.

August 2020 volumes likely declined by mid-single digit YoY - broadly similar to those seen during June-July 2020.

Average pan-India prices were up 2% YoY in August 2020 even as prices fell 3-4% month on month across most regions coupled with higher fall of Rs 2,530 per bag in the non-trade segment.

Improving demand and increasing costs would necessitate price increase going ahead. We expect volumes and prices to improve hereon.

Recent under performance of cement stocks during the seasonally weak monsoon period is an opportunity to accumulate, in our view.

Click on the attachment to read the full report:

ICICI Securities Cement Monthly Update Sep20.pdf


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 brokerage and do not represent the views of BloombergQuint.

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