India's cement sector to see pricing, demand revival- Jefferies, Centrum

JK Lakshmi Cement

13/01/2025 07:36

** Cement prices to see revival after bottoming out in Oct,
when they fell to 3-4 year lows, brokerages Jefferies and
Centrum say
    ** Moderation in competitive intensity, slower pace of
market share consolidation to reduce price discounting, improve
profitability in H2FY25 - brokerages
    ** Pace of M&A and market share consolidation - largely
driven by top two players Ultratech Cement  ULTC.NS  and Ambuja
Cements  ABUJ.NS  - to slow as companies stabilise cash position
and capacity - Jefferies
    ** Brokerages also see demand improvement heading into
construction season after lower capex as elections and strong
monsoon flooding reduced activity
    ** Demand to improve in East, North and Central region -
Centrum
    ** "Highest price hike was observed in North and East"-
Centrum
    ** Jefferies and Centrum top picks: ULTC and JK Lakshmi
Cement  JKLC.NS 
    ** On the day, ULTC and JK Lakshmi down 1.5% and 1.1% each
to 10,696 rupees ($123.70)and 777.5 rupees amid broader market
weakness 


($1 = 86.4675 Indian rupees)

 (Reporting by Ananta Agarwal in Bengaluru)
 ((Ananta.Agarwal@thomsonreuters.com))