Firm prices in Q2 to benefit pan-India cement makers

Players such as UltraTech, ACC, Ambuja Cements and Shree Cement seen benefiting from firm prices

Cement prices remaining firm on a year-on-year (y-o-y) basis in the seasonally soft September quarter (Q2) should accrue benefit for pan-India manufacturers and players focussed on Northern, Eastern and Western regions. Notably, analysts expect prices to hold ground going ahead as well, led by higher demand, thereby benefitting cement markers.

Usually, as Q2 witnesses monsoon, prices tend to remain soft. Thus, the increase in all-India cement prices by 1-2.5 per cent y-o-y is surprising. Though demand from the housing segment remains subdued in the monsoon season, government projects are lending support, say analysts.

Moving forward, expectations remain firm on demand revival led