Mideast conflict casts long shadow over Indian cement firms' margins, Axis Capital says
BUZZ-Mideast conflict casts long shadow over Indian cement firms' margins, Axis Capital says ** Axis Capital says Q1 was a muted quarter for Indian cement sector due to cost inflation in the wake of the Middle East crisis
** Cuts margin and earnings estimates for FY27-28 for most companies under its coverage
** "Cost inflation is expected to remain elevated even in H2 FY27 as West Asia conflict gets drawn out" - Axis Capital
** Brokerage says capacity addition pipeline over the next 18 months remains elevated with majority coming from industry leaders like UltraTech Cement ULTC.NS, Dalmia Bharat DALB.NS, Ambuja Cements ABUJ.NS and JK Lakshmi Cement JKLC.NS
** Says pricing gains are likely to be capped, given the significant capacity addition pipeline over the next 18 months
** Shares of ULTC down 0.4%, DALB down 0.2%, ABUJ down 0.1% and JKLC down 0.2%
** Shree Cement SHCM.NS up 0.6%, ACC ACC.NS up 0.1%, Ramco Cements TRCE.NS down 0.4%
** YTD, Nifty Cement Index .NIFTYCEMENT down 0.9% vs 7.1%fall in benchmark Nifty 50 Index .NSEI
(Reporting by Abhinav Parmar in Bengaluru)
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