Cement: Upto INR15/bag price hike announced wef mid-night toda | DM Stocks

Cement: Upto INR15/bag price hike announced wef mid-night today (Antique)

· Channel checks suggest companies have announced upto INR15/bag hikes across most regions wef mid-night today after a gap of 3-4 months.
· South – INR15/bag, West –INR 5-15/bag, North – INR 10/bag over INR5/bag last week, Central / East –INR5/bag.
· Dealers in North / Central and West seems more confident on sustenance of these hikes vs South and East ( as also 3Q already saw max QoQ price hike in South / East).
· Extent of absorption of these hikes may act as key trigger for the sector.
· 3Q EBITDA/ton rose by INR200/ton QoQ and 4Q also is likely to see similar trend QoQ even without factoring any price hikes.
· Top picks remains UTCEM, SRCM, JKCE, JKLC.