30 Nov 2022
- The government may spend on programs such as Pradhan Mantri Awas Yojna, irrigation and road projects, which could aid the demand for cement.
- Demand has picked up from the construction sector as demand picked up post a correction in steel prices.
- Demand can be expected to improve in rural areas following a robust monsoon.
- Future demand could be boosted by the central and state governments gearing up for capital expenditure.
- Companies are likely to focus on pricing, and this could support profitability.
- Recovery in the housing market and pick-up in infrastructure activities could support demand.
- Pricing may remain stable because of consolidation in the sector, and the high cost of acquisitions.
- Increase in freight, power or fuel costs, which is about half of the cost for cement-makers.
(House View aims to regularly provide readers with Kotak Mahindra Mutual Fund’s latest updates on various sectors)
The views discussed here are as on end of Sep 2022.
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