Sector Construction Materials - Latest news, views and updates - page 5

Construction Materials

SECTOR | 21 Sep 2023

Tiles exports stay robust; MDF imports remain elevated

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Construction Materials

ICICI Securities Limited

The EXIM data for the month of Jul’23 has been a mixed bag. Tile exports stood at 55.6 MSM growing substantially by 41.5% YoY / 52.5% MoM with GCC countries (~17%), Iraq (~7%) and USA (~6%) being the top export destinations. Tile exports remain robust due to lower freight rates and a significant decline in gas costs. As per industry participants, tile exports are expected to remain healthy in the near term too.

Construction Materials

SECTOR | 31 Aug 2023

Elevated competitive intensity in South

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Construction Materials

ICICI Securities Limited

As part of our channel checks, we interacted with a few senior marketing personnel – including an industry expert – in the southern states of Tamil Nadu and Kerala. Key takeaways are: 1) race for leadership position is driving up competitive intensity in the region; 2) Andhra players have been marginalised due to un-remunerative prices; 3) demand outlook remains positive on the back of infra push even as uncertainty looms over pricing.

Construction Materials

SECTOR | 23 Aug 2023

Fuel cost raising its head

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Construction Materials

ICICI Securities Limited

Even as cement prices stand weak (since Q2FY23 till date), the street found solace in the plunging global fuel costs, hoping it will stay low and drive-up EBITDA margins. However, the recent rebound in global fuel rates (petcoke up 23% and thermal coal up 16% from the bottom of mid-July’23) could challenge the hypothesis (our savings expectations have been reduced from INR 350/te to INR 270/te).

Construction Materials

SECTOR | 21 Aug 2023

Top Sector Ideas - Cement

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Construction Materials

Axis Direct

Top Sector Ideas - Cement

Construction Materials

SECTOR | 04 Aug 2023

‘Ambuja-Sanghi’ deal: Collateral damage for the sector?

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Construction Materials

ICICI Securities Limited

On the face of it, the acquisition of Sanghi Industries (SIL) by Ambuja Cements (ACEM) comes across as industry consolidation. However, we view it as a catalyst to start price war in West India given – a) SIL’s sales volumes stand at just 2-2.5mn tonnes p.a. as against cement capacity of 6.1mtpa and clinker capacity of 6.6mtpa; b) with Adani
Group’s expertise in port logistics and ACEM’s strong brand presence in West India, we see huge scope for ACEM to run SIL units at optimal capacity.

Construction Materials

SECTOR | 04 Aug 2023

‘Ambuja-Sanghi’ deal: Collateral damage for the sector?

buy

Construction Materials

ICICI Securities Limited

On the face of it, the acquisition of Sanghi Industries (SIL) by Ambuja Cements (ACEM) comes across as industry consolidation. However, we view it as a catalyst to start price war in West India given – a) SIL’s sales volumes stand at just 2-2.5mn tonnes p.a. as against cement capacity of 6.1mtpa and clinker capacity of 6.6mtpa; b) with Adani Group’s expertise in port logistics and ACEM’s strong brand presence in West India, we see huge scope for ACEM to run SIL units at optimal capacity.

Construction Materials

SECTOR | 02 Aug 2023

Bumpy ride ahead?

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Construction Materials

ICICI Securities Limited

Contrary to Street’s expectations, Q1FY24 results for cement companies, under our coverage, have largely disappointed with QoQ drop in EBITDA/t. Hereon, we highlight the risks of – a) likeliness of Q2FY24 EBITDA/t taking a further dip (owing to low operating leverage and cement price weakness); b) caution against assuming Q2FY24 prices as the bottom (historically, prices have dipped QoQ in Q3 and Q4 as well).

Construction Materials

SECTOR | 06 Jul 2023

Cement - Q1FY24 Earnings Preview

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Construction Materials

Axis Direct

TOP RESULT PICK: UltraTech Cement, Ambuja Cement, Dalmia Bharat, Birla Corporation, JK Lakshmi, Star Cement

Construction Materials

SECTOR | 06 Jul 2023

Q1FY24 preview: Expect healthy operating profit growth barring woodpanel cos

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Construction Materials

ICICI Securities Limited

Building material companies under our coverage are expected to report a mixed quarter (Q1FY24E) YoY with pipes and ceramics seeing healthy operational performance aided by lower raw material prices and tepid base whereas woodpanel companies may see continued margin pressure due to higher raw material cost.

Construction Materials

SECTOR | 05 Jul 2023

Q1FY24 preview: It’s raining volumes! Yet a dry patch for EBITDA

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Construction Materials

ICICI Securities Limited

Demand in pre-election year FY24 has started on a strong note. Volume for our coverage universe is estimated to grow >15% YoY (in sync with industry). Yet, coverage EBITDA is expected to stay flat YoY owing to – a) muted cement prices (down 4-5% YoY, flattish QoQ) and b) marginal QoQ drop in fuel cost due to inventory-lag impact (major benefits expected in Q2/Q3 FY24E).