Street positive on cement stocks despite pricing pressures, demand woes

The industry continues to see consolidation and the top five will gain aggregate market share due to large capex. This could lead to more pricing power

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Given July 2024 weakness, and cautious guidance, further Q-o-Q declines in realisation will have happened in Q2FY25 over Q1FY25. But Q3FY25 and Q4FY25 may see a realisation rebound as rains ease. Representational Image

Devangshu Datta

3 min read Last Updated : Sep 02 2024 | 10:59 PM IST

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Cement manufacturers have hiked prices after a challenging Q1FY25, and Q2FY25 (so far) when general elections and seasonal factors cut down on construction activity. The August prices are currently around 3-6 per cent above July 2024 but may not be sustainable in the face of weak demand. H2FY25 may see realisation growth which, if it happens, would drive average operating profit/tonne improvements in H2FY25 over a muted H1FY25.

The industry continues to see consolidation and the top five will gain aggregate market share due to large capex. This could lead to more pricing power.

Cement prices corrected

Topics : Cement stocks cement industry stock market trading share market Market news

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