Nomura remains constructive on cement sector; sees pricing recovery, names UltraTech, Dalmia Bharat top picks
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- ✓Nomura remains constructive on the cement sector, naming UltraTech Cement and Dalmia Bharat as top picks.
- ✓The brokerage said pricing momentum improved in September, with trade prices rising by Rs10 per bag.
- ✓Nomura noted, "sustained margins will depend more on the industry's ability to maintain pricing than on further easing."
Story at a Glance
- Category
- BUSINESS
- Reported By
- MoneyControl
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Nomura remains constructive on the cement sector despite near-term margin headwinds, with UltraTech Cement and Dalmia Bharat as its top picks, both rated 'Buy'. The brokerage said channel checks indicate improving pricing momentum, although demand recovery remains key. Pan-India average cement trade prices increased by around Rs10/bag month-on-month in September, with dealers expecting a further around Rs10/bag hike in October. Nomura said pricing momentum improved after two subdued months, taking 2QFY27 average adjusted trade prices to Rs325/bag, broadly flat quarter-on-quarter.
However, dealers said the recent price push was "largely company-led" and cautioned that absorption of further hikes would remain difficult and delayed, with poor uptake, upcoming festivities and monsoon-related disruptions weighing on construction activity.
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