BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
We expect the recent correction in petcoke prices to aid a reduction of ~Rs 280/tonne in operating cost in Q3, after an increase of Rs 200-250/tonne in Q2 FY23. The key risk to our assumption is any increase in coal prices due to the deepening of the energy crisis in Europe.
We expect cement demand to rise 2-3% YoY in July-August 2022 (5-6% on a three-year compound annual growth rate basis). Demand in a few markets (such as Punjab) was impacted by sand unavailability issues. However, we expect cement demand to improve after the monsoon season ends.
Cement prices remained under pressure and declined by 1-3% month-on-month across regions, excluding the South, in Aug-22.
Pan-India average cement price fell ~5% in Q2 FY23 till date versus its Q1 average. A few of the dealers in North and Central India and Gujarat indicated likely price hikes in the range of Rs 10-20/bag in September 2022.
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