IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, in a recent report on Cement said it expects YoY Growth for Oct-Nov 2011 at 7-8% as against YoY growth of 5.6% in Oct-Nov 2010.
Based on the initial set of cement dispatch numbers, IIFL estimates industry dispatches to have increased 15-18% YoY for November 2011.
Strong November 2011 growth is partially due to the low base as last year, the festive season was in November; however, growth continues to show an improving trend even when dispatches for October and November are seen together, the report said.
The brokerage’s channel checks indicate strong demand in the rural and semi-urban housing segments and in the infrastructure segment in the west, north, and central regions.
“Cement prices remained stable in all regions for the past two weeks; we expect year-end discounts in December by MNC cement players and uptick in prices early January. We continue to expect acceleration in demand growth in coming quarters with revival in rural and infrastructure demand,” IIFL said.
The report was published by IIFL’s Institutional Equities Research desk.