Expect cement demand growth to go up by 9-10% in FY22: Nirmal Bang Institutional Equities

Mangesh Bhadang of Nirmal Bang Institutional Equities is optimistic of seeing 9-10 percent volume growth in cement in FY22.

“FY20, FY21 the cement demand contracted. Following that, it was expected that at least this year the demand should be up 9-10 percent or even higher. Somewhere around 9-10 percent is more optimistic or realistic picture of cement demand this year," he said.

The downward momentum in cement prices is seasonal in nature. “From May onwards, every month the demand keeps going down during monsoon. We will definitely see demand picking up again in second half of the year,” he added.

According to him, the industry witnesses price correction because seasonally the demand is on the lower side. “In Q4FY21 we saw pricing going up significantly, it sustained in the month of April, May and large part of June. June onwards we started seeing prices coming down. On an all India basis, almost Rs 12-15 decline is there,” he explained.