Nomura sees volume growth in H2 for Indian cement companies

Shree Cement

27/12/2023 10:10

** Nomura expects Indian cement companies' sales to increase
11% in H2 over H1 FY24, and up 13% YoY
    ** Shares of UltraTech Cement  ULTC.NS  rise 4.1%, Dalmia
Bharat  DALB.NS  4.1%, Ramco Cements  TRCE.NS  3%, and Shree
Cement  SHCM.NS  0.1% as of 2:52 p.m. IST
    ** Nomura upgrades ULTC, DALB, TRCE to "buy" rating from
"neutral" 
    ** Nomura raises TP of ULTC to 11,500 rupees ($137.98) from
9,300 rupees, DALB to 2,900 rupees from 2,600 rupees, and TRCE
to 1,250 rupees from 980 rupees
    ** Maintains "buy" on SHCM while raising TP to 33,400 rupees
from 27,800 rupees
    ** Sees 5% CAGR in India's cement demand over FY24-26
    ** For FY25, cement demand will likely moderate due to
elections; however, it should remain higher than the past
10-year CAGR of 4% - Nomura
    ** As per LSEG, median TP for ULTC, DALB, TRCE and SHCM
stood at 9,413.50 rupees, 2,525 rupees, 979 rupees and 25,000
rupees, respectively
    

($1 = 83.3425 Indian rupees)

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