Building Materials Sector Check - Pipes Demand Stays Healthy; Other Segments Remain In Slow Lane: Systematix

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Our channel checks suggest demand would remain soft for most building material categories in Q4 FY24, impacted by inflation led weakness in consumer sentiment.However, we expect the pipes segment to sustain its growth momentum and report robust 12-25% YoY volume growth driven all verticals (plumbing, infra and agri) and led by Supreme Industries Ltd., Apollo Pipes Ltd. and Astra Ltd.(volumes up 20-25% YoY). Prince Pipes and Fittings Ltd. (downgrade to Hold) and Finolex Industries Ltd. are expected to report low 12-15% volume growth.However, a ~15% YoY dip (flat QoQ) in PVC prices (on three months rolling basis) would restrict revenue growth of these companies. Pipe companies are optimistic about sustaining volume growth and healthy margins in the coming quarters owing to low and stable PVC price.For wood panels, we expect plywood volumes for leading brands to be impacted by rise in timber prices and competition from regional players. Greenpanel Industries Ltd. MDF volume/revenue is expected to be flattish YoY while it will likely rise for Century Plyvoards India Ltd. and Greenply Industries Ltd.; intense competition led to 2-4% price correction during Q4.Stylam Industries Ltd. is expected to report 10%/1% YoY rise in laminate volume/revenue but a strong 32% YoY surge in profit after tax aided by a strong Ebitda margin (~22%). For tiles and bathware, Kajaria Ceramics Ltd. and Somany Ceramics Ltd. could report a low 3-4% YoY volume growth in tiles. Softer gas costs should keep margins high though.On a high base, Cera sanitaryware Ltd. is expected to report flattish result. Caryslil Ltd. sequential recovery is expected to sustain in Q4 (revenue/profit after tax up 40%/68% YoY and 8%/36% QoQ) on normalisation of channel inventory in U.S and other markets..Click on the attachment to read the full report:.Bharti Hexacom Ends At 43% Premium Over IPO Price.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Building Materials Sector Check - Pipes Demand Stays Healthy; Other Segments Remain In Slow Lane: Systematix

Demand to remain soft for most building material categories in Q4 FY24, impacted by inflation led weakness in consumer sentiment.

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Building Materials Sector Check - Pipes Demand Stays Healthy; Other Segments Remain In Slow Lane: Systematix

Demand to remain soft for most building material categories in Q4 FY24, impacted by inflation led weakness in consumer sentiment.

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