Global brokerage Jefferies remains upbeat on the cement sector , expecting a sharp rebound in earnings this quarter despite sluggish demand. According to the brokerage, “We expect cement coverage to post strong 52% YoY growth in EBITDA on better pricing (+5–6% YoY) and a soft base, even as volume growth remains soft at less than 5% YoY.”

Jefferies on Cement sector: Muted demand, firm prices

Jefferies noted that heavy monsoons and early festive sales had kept demand subdued, but pricing held firm. “During Q2, industry pricing was relatively resilient despite heavy monsoons impacting construction activity,” it said.

Prices dipped only about 1–1.5% QoQ, led by a 4% drop in the South, while other regions stayed largely stable.

With fuel costs inching up, Jefferies expects companies to

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