Top-3 maintain 8-9% volume growth guidance; seasonal price correction
below normal
We hosted ACC, Ambuja Cements and Grasim/Ultratech at the Motilal Oswal 8th Annual
Global Investor Conference. Mr Kuldeep Kaura, CEO & MD of ACC, presented at the CEO Track.
Highlights:
Volumes are likely to grow 8-9% in FY13, driven by individual housing and expected
infrastructure push. Seasonal price correction has been sub-normal till August due to
delayed monsoon.
Capacity addition should slow down to ~60mt over FY13-15. Increase in capex cost
necessitates sustenance of higher profitability; downside risks are limited.
The costs of power, fuel and freight, which have been rising, are likely to stabilize at
elevated levels. The focus would remain on enhancing operating efficiencies and
maintaining margins.
We prefer Ambuja and Grasim/Ultratech among large-caps and Shree Cement among
mid-caps.Top-3 maintain 8-9% volume growth guidance; seasonal price correction
below normal
We hosted ACC, Ambuja Cements and Grasim/Ultratech at the Motilal Oswal 8th Annual
Global Investor Conference. Mr Kuldeep Kaura, CEO & MD of ACC, presented at the CEO Track.
Highlights:
Volumes are likely to grow 8-9% in FY13, driven by individual housing and expected
infrastructure push. Seasonal price correction has been sub-normal till August due to
delayed monsoon.
Capacity addition should slow down to ~60mt over FY13-15. Increase in capex cost
necessitates sustenance of higher profitability; downside risks are limited.
The costs of power, fuel and freight, which have been rising, are likely to stabilize at
elevated levels. The focus would remain on enhancing operating efficiencies and
maintaining margins.
We prefer Ambuja and Grasim/Ultratech among large-caps and Shree Cement among
mid-caps.