Indian cement companies to post 'robust' volume growth in FY24 - Nuvama

India Cements

02/06/2023 08:35

** Q4FY23 brought cheer for cement companies with volume
growth of up to 12% YoY for 10 major companies, sequential
improvement in profitability with EBITDA per tonne up 15% QoQ,
analysts at Nuvama Institutional Equities say
    ** Analysts say that despite a busy season and fall in
power/fuel costs, realisation growth was "tepid" due to
heightened competitive intensity
    ** With most top companies embarking on capacity expansion,
we are cautious on pricing growth - Nuvama
    ** Brokerage believes FY24 could see a repeat of FY19,
another pre-election year, when volume growth was robust
(double-digit), but pricing was subdued
    ** Brokerage picks J.K. Cement Ltd  JKCE.NS  as its top
pick; recommends "buy" on JKCE, ACC Ltd  ACC.NS , Ambuja Cements
Ltd  ABUJ.NS ; "hold" on UltraTech Cement Ltd  ULTC.NS  and
Grasim Industries Ltd  GRAS.NS  and "reduce" on  India Cements
Ltd  ICMN.NS  and Shree Cement Ltd  SHCM.NS  

        
    

 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com (+91 7982114624))