Demand revival seen in Jan for stagnant Indian cement sector - Systematix

J K Cement

28/12/2022 08:53

** Demand momentum and pricing expected to pick up for
Indian cement industry in Jan 2023 after lower-than-expected Dec
2022
    ** Demand seen supported by a pick-up in pre-general
election construction work, labour availability and favorable
weather conditions - Systematix
    ** While companies hiked prices by 15 rupees to 20 rupees
per bag, they could not sustain it for long due to sluggish
demand, and rolled them in second half of Dec, the brokerage
said
    ** Analysts note fall in cement prices on an average of 4
rupees per bag on monthly basis in Dec
    ** Recommends "buy" rating on Birla Corporation  BRLC.NS 
and "hold" on Ramco Cements  TRCE.NS , Shree Cement  SHCM.NS ,
Dalmia Bharat  DALB.NS , and J K Cement  JKCE.NS  while rating
"sell" on ACC Ltd  ACC.NS , Ambuja Cement  ABUJ.NS  and
Ultratech Cement  ULTC.NS  
    ** Easing of international petcoke, coal prices, stable
diesel prices could provide respite on cost front
for cement makers, says Systematix
    ** At 2.13 pm, SCHM was up 0.66%, ULTC up 0.15%, JKCE was
flat, while ABUJ down 0.46% and DALB was down 0.63%, BRLC down
0.95% and ACC down 0.49%. 
 (Reporting by Priya Sagar in Bengaluru)
 ((Priya.Sagar@thomsonreuters.com;))