India cement sector Q2 profit to fall on weaker pricing, higher fuel costs: Investec
Investec expects Indian cement sector Q2 EBITDA/tonne to fall 130-200 rupees on weaker pricing and higher fuel costs. The firm also warned that spot fuel inflation could keep second-half profitability flat from first-half levels.
Investec, which LSEG data rates 4 out of 5 stars for overall rating accuracy, expects Indian cement sector Q2 EBITDA per tonne to fall 130-200 rupees on weaker pricing and higher fuel costs. The broker said FY27 earnings downgrades may not be over, even after consensus cuts of 43% already. It also warned that spot fuel inflation could keep second-half profitability flat versus the first half. Investec prefers Ambuja Cements, UltraTech Cement, JK Cement and JSW Cement, citing stronger balance sheets and expansion options, and rates each of them a "buy".
It is cautious on HeidelbergCement India, Prism Johnson, Ramco Cements, Star Cement and Shree Cement, rating each of them a "sell".