HDFC Securities has said in its latest report that the expected recovery in the cement sector may take another year. It has also cautioned against a longer slump in the unorganised real estate market, due to the aftermath of demonetisation, a sector which drives a large proportion of cement sales.
The report says that until October, cement demand had grown by 5.1 per cent year-on-year. Strong monsoons had also raised the expectation of a demand revival in Maharashtra, Telangana and Karnataka. However, HDFC Securities says that things have “taken a turn for the worse” post demonetisation.
Demand declined by 25-30 per cent in North Central India and by 15-30 per cent in West and South India.