Fwd: Cement Sector Update; Seasonal uptick in prices continue

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Deepak Vaishnav

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Nov 24, 2011, 6:46:59 AM11/24/11
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Cement Sector

Seasonal uptick in prices continue

 

n     All India avg cement prices up by 3.3% mom (+Rs9/bag). Eastern (+Rs21/bag) & Northern (+Rs13/bag) region see sharp price hikes followed by Western region (Rs9/bag)

n     Despite the political issues and monsoons dragging cement offtake in the Tamil Nadu region, prices hold fort. Dealers expect further hikes in western and northern parts

n     Cost push likely to continue in Dec-11 quarter led by 1. Higher e-auction coal prices (as CIL’s E auction coal was diverted to power companies in Oct) 2. Imported coal prices going up led by Rupee depreciation 3. Hike in surcharges by railways 

n     Though July-Oct 2011 dispatches grew +4.6% on low base, demand yet to reflect strength. Solid demand picks up remains a key trigger to sustain the ensuing seasonal price uptick. Remain sector NEUTRAL.Prefer ACC,SRCM & Grasim

 

Regards,

Ajit Motwani

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : ajit.m...@emkayglobal.com 

Board No. : +91-22-66121212 | Extn. : 255 | DID : 66121255 | Mob : +919820934229 |

 

 


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Cement Sector Update_241111.pdf
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