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MUMBAI: Cement stocks are likely to gain this week as prices of the primary building material are expected to rise by Rs 15-30 per bag due to strong demand across states and to negate the increase in input costs. The price rise, coupled with improved capacity utilization in the March quarter, would result in upgrades of earnings estimates, according to analysts.
“Dealers suggest prices may be hiked by another Rs 15-30 per bag across most regions effective from the first week of April, led by continued strong demand and necessitated by cost escalations,” said Krupal Maniar, analyst, ICICI Securities. “Consensus of FY22-23 estimated earnings upgrades are likely to continue, given strong demand, price hike in March coupled with the announced price hikes, would ensure sustainability of YoY margins in the June 2021 quarter.”