Construction Materials share price target

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...

EBITDA and PAT are expected to decline by 20.6% and 24.1% YoY, respectively, mainly due to margin contraction of 380bps YoY, largely because of inventory losses and volatility in PVC resin prices. Supreme Industries and Astral are expected to post moderate sales growth of +3.2% and +4.3% YoY, respectively, with volume growth in the Pipes & Fittings (P&F)...

volume growth and a slight uptick in pricing during the quarter. Demand remained firm across regions, led by private builders and IHB segment, supported by a growing real estate market, increased government-led infrastructure activities, and the lifting of GRAP-3 restrictions imposed earlier in NCR due to pollution. However, certain challenges impacted pricing and overall growth. Labor shortages due to regional festivals in Jan'25, an increase in non-trade sales, and a volume push by companies to meet year-end sales targets restricted the scope for price hikes. Additionally, intense competition...

Our Top Positive Plays: UltraTech Cement; JK Cement; JK Lakshmi Cement; Star Cement

strong in Mar'25 and has been on an upward trend since late Dec'24. However, prices declined in a few regions in Mar'25, primarily due to dealers pushing volumes to meet year-end targets. Among key markets, Ahmedabad, Bhopal and Hyderabad saw a price decline of Rs10/bag, while prices remained unchanged in Jaipur, Chennai and Mumbai. In contrast, Delhi, Patna, Kolkata and Lucknow witnessed a price hike of ~Rs10/bag. As a result, all-India average price remained largely flat MoM at Rs352/bag. Looking ahead, with...

Top Conviction Ideas - UltraTech Cement Ltd, JK Cements Ltd, Ambuja Cements Ltd

Q3FY25 Earnings Preview - CEMENT

Top Conviction Ideas Cement: UltraTech Cement Ltd; JK Cements Ltd ; Ambuja Cements Ltd

Our top positive plays are: UltraTech Cement; Shree Cement; ACC Ltd; Birla Corporation; JK Cement; JK Lakshmi