Ultratech Cement stock better placed amid recovery hopes in demand

Cement players hiked prices in Sept'24, but had to roll back prices in the South. In the first week of Oct'24, price hikes have again been announced and it remains to be seen if these are sustained

The cement industry struggled through the July-September quarter (Q2) of financial year 2025 (FY25) due to seasonal factors and high competitive intensity. The first half (H1FY25) saw quarters of consecutive decline. Cement prices saw 4-5 per cent quarter-on-quarter (Q-o-Q) decline in Q2FY25, despite attempts to hike prices. Despatch volumes were low due to heatwave, monsoons and a delayed Budget.

Ebitda may drop 20-25 per cent year-on-year (Y-o-Y) in Q2FY25. The H1FY25 Ebitda could drop 10-15 per cent Y-o-Y over the same prior period. Hence, the sector could be hit by earnings downgrades. The medium-term will continue to