Seasonal Price Hikes For Cement Likely From Mid-January, Says ICICI Securities
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ICICI Securities Report
Our channel checks suggest industry demand likely grew in low single digit YoY during December 2020, while average pan-India prices corrected 3-4% month-on-month (still up 5% YoY) owing to volume push (by calendar year-end companies) and fight for higher market share.
Volumes and prices both are likely to be up 5-6% YoY during Q3 FY21E, which would drive more than 25% YoY Ebitda growth.
Key trigger to watch out for, would be seasonal price hikes which usually start from mid-January 2021 as peak construction period sets in and also necessitated this time by cost escalations.
We remain optimistic about the imminent price hikes.
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