Motilal Oswal - MOSL: CEMENT-Prices up sharply since end-Dec, but likely to taper off

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Motilal Oswal

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MOSL: CEMENT-Prices up sharply since end-Dec, but likely to taper off

CEMENT: Prices up sharply since end-Dec, but likely to taper off

We hosted a conference call with cement dealers from the east (Kolkata, WB), south (Kochi, Kerala) and central (Kanpur, MP) regions to gauge the demand and pricing outlook for the cement sector. Key highlights:

The trend of improving demand in December and January has weakened in February as infrastructure work has not picked up materially and urban housing remains weak.
Demand in east though is still faring better growing at ~6% YoY in January, while south demand continues to decline. Demand in central has been flattish.
Prices have moved up by INR15-25/bag (5-7%) YTD CY20 in east and central (led by hikes in January), while those in south are flat due to weak demand.
Dealers across regions expect prices to correct in March by INR10-20/bag as companies push volumes to meet their year-end targets. The attempted hikes in February in east/central have been fully rolled back, but January hikes have sustained.
There have been concerns about new capacities coming up in east which will likely create a fight for market share there.

26/02/2020 6 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: CEMENT-Prices up sharply since end-Dec, but likely to taper off

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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