Cement Sector Check - Volatility In Prices; Demand To Revive On Back Of Pre-Election Spending: IDBI Capital

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. .IDBI Capital Report.Our interaction with cement dealers suggests that the average cement price at all India level has increased by 2% (Rs 3-10/bag) month-on-month in Feb-23. Region wise, price hike is maximum for South (up 3%), followed by Central region (up 2%). However, in north we notice volatility in prices and need to watch for the trend. Energy prices have seen sharp decline, in Feb-23 average imported coal price stood at $145/tonne (6000 kilo calorie) (decreased by 15% month-on-month) and the price is one of the lowest since March 2022. Demand is sustaining for cement industry, as per core sector data in Dec-22 (volume is up 9.1% YoY on a high base). We expect recovery in Ebitda/tonne for cement companies in Q4 FY23E and industry Ebitda/tonne to improve by Rs 200/tonne QoQ on 10% YoY volume growth, 10% QoQ decline in fuel cost and assuming 1% QoQ price hike..Click on the attachment to read the full report:.Building Materials Sector Check - Strong Recovery In Agri Pipes; Wood Panels, Tiles In Soft Lane: Systematix.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.

Cement Sector Check - Volatility In Prices; Demand To Revive On Back Of Pre-Election Spending: IDBI Capital

Region wise, price hike is maximum for South (up 3%), followed by Central region (up 2%).

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