Construction Materials share price target

Q3FY26 Earnings Preview - CEMENT

The cement sector in India experienced subdued demand during Q3FY26, particularly in October and November 2025, following a moderate growth in the previous quarter.

Our Top Positive Plays: UltraTech Cement; Dalmia Bharat; JK Cement; JK Lakshmi and Star Cement

In May'25, PVC resin prices increased by Rs 1.5 per Kg in the domestic market, marking a reversal after consistent decline over the past five months and PVC resin prices increased by Rs 4.6 per Kg till Aug-25. However, in Q1FY26...

Top Conviction Ideas - UltraTech Cement Ltd, Ambuja Cements Ltd, Dalmia Bharat Ltd, JK Lakshmi Cement

declines of Rs37/bag in the West and South, while the East saw a ~Rs10/bag increase. Prices in the North and Central regions remained flat. As a result, the all-India average price was flat MoM at ~Rs361/bag. Looking ahead, dealers expect limited pricing action until the monsoon recedes....

In Q1FY26E, the Indian cement sector witnessed a strong sequential recovery in pricing, particularly in the southern and eastern markets, following an extended period of margin compression and weak realizations.

demand to some extent. However, overall demand remained mixed across regions, mainly due to extreme heatwaves affecting labor availability and demand, southern markets saw the steepest price hike during the quarter,...

Q1FY26 Earnings Preview - CEMENT

Building Material companies under our coverage universe are expected to report single digit revenue growth due to weak demand, along with contraction in margins due to fluctuations in PVC resin prices in plastic pipe companies and tiles, due to oversupply in the domestic market, which has leads pricing pressure. We anticipate moderate volume growth of 5.2% YoY in plastic pipe sector. Tiles and bathware sectors are likely to experience single digit growth expecting demand to pick up in H2FY26. We expect coverage companies to register sales growth of 4.3% YoY, given correction in Finolex Ind revenue and...

Dealers expect prices to decline further in Jul'25 as the monsoon picks up. However, prices remain strong compared to FY25 and YoY prices are up significantly in Southern & Eastern regions. We interacted with cement dealers across regions in India to assess the demand and pricing scenario in Jun'25. Our discussions indicate a mixed demand environment across markets. While heatwaves continued to impact...

We recently interacted with an expert in the Indian ceramic industry, who provided deep insights into the current landscape of the tile industry in Morbi. The discussion covered critical aspects such as gas pricing trends, export and...

Dealers expect prices to remain flat in Jun'25 with the onset of the monsoon. We interacted with cement dealers across regions in India to assess the demand and pricing scenario in May'25. Our discussions indicate mixed demand scenario across regions. Prices declined in certain markets due to extreme heatwaves affecting labor availability. Early onset of monsoon further added pressure, leading to a slowdown in construction activities in some...

Top Conviction Ideas - UltraTech Cement Ltd., JK Cement Ltd., Birla Corporation Ltd.

We interacted with cement dealers across regions in India to assess the demand and pricing scenario in Apr'25. Our discussions indicate that demand remained steady across most of the regions during the month. However, prices declined in certain markets due to extreme heatwaves affecting labor availability, which in turn weighed on demand. The ongoing marriage and...