The market is now eyeing the budget. It is expected that capex may increase in the budget, which will also benefit the cement sector. The cement sector is also in focus regarding the results of the third quarter. B&K Securities has brought out a report on the expectations of this space. According to this report, cement volume growth may get a boost from housing and infra in the fourth quarter. Let’s take a look at this report.
Expectations from cement sector in the third quarter – B&K Sec
B&K Securities says that the pace of growth in the cement sector may continue. Demand remained weak in the first half of FY 2025 due to monsoon and elections. There was a growth of 4-5 percent on annual basis in the third quarter. Better volume growth has been seen in South and West India. Volume growth has been sluggish in North India. A 6-7 percent volume growth boost is possible from housing and infra in the fourth quarter. Volume growth is likely to get support from housing and government projects. Prices have increased by Rs 5-7 per bag in the third quarter of FY 2025. There has been a recovery in cement prices in December-January.
Experts views: Indication of the beginning of a new phase of decline in the market, the strategy of “selling on the rise” will work.
Outlook of cement sector: B&K report
This report of B&K states that stable pricing is expected in the cement sector in the financial year 2025. Cement prices may increase from financial year 2026. Consolidation in the industry and acceleration in government projects may lead to further increase in cement prices. B&K Securities says that 50-60 percent market share of UltraTech and Ambuja is possible in the western region in 5-6 years. B&K’s view on the cement sector is that there is less focus on 20 cement brands in the urban market. There is more emphasis on premium cement in the rural market.
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