Building Materials Q2 Results Preview - Margin Expected To Improve, Healthy PAT: Prabhudas Lilladher

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..Prabhudas Lilladher Report.Building Material companies under our coverage universe are expected to report moderate volume growth. However, we anticipate robust volume expansion in the plastic pipe sector, while the tiles and wood panel sectors are likely to experience lower growth.We expect companies to register sales growth of 4.7% YoY, given correction in raw material prices which mainly impacted plastic pipe segment realisations and de-growth in wood panel companies. With sequential stable raw material prices and correction in power and fuel expenses, we expect margins to go back to normal level (plus 580 basis points YoY) along with Ebitda/profit after tax growth of 78.6%/87.5% YoY (on lower base), excluding Finolex Industries Ltd.., Ebitda/profit after tax growth of 27.2%/28.0% YoY. We remain positive on the sector considering. buoyancy in real estate market (despite interest rate hike),Government focus of housing, sanitation and infrastructure,improvement in agri. segment with normalisation in raw material prices,pick up in export, andincrease in branded/large players market share. We prefer plastic pipe companies with robust volume growth, our top pick is Supreme Industries Ltd. considering revenue/Ebitda/PAT compounded annual growth rate of 15.1%/21.9%/21.6% over FY23-26. Considering buoyancy in real estate, tiles demand with lag in real estate cycle will benefit Kajaria Ceramics Ltd. being leader in sector. We continue to like Greenpanel Industries Ltd., given its. leading position in domestic MDF segment, strong growth prospects in domestic MDF demand,planned capacity increase of 35% over FY23-25 and extensive distribution network..Click on the attachment to read the full report:.Automobiles Q2 Results Preview - Higher Realisation To Drive Strong Performance: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Building Materials Q2 Results Preview - Margin Expected To Improve, Healthy PAT: Prabhudas Lilladher

We prefer plastic pipe companies with robust volume growth, our top pick is Supreme Industries .

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