8 Stocks From Building Materials Space With Positive View From Sharekhan

Sharekhan is bullish on 8 stocks from building material space. The broking firm has either given a buy, hold or positive recommendation on these stocks. In its sectoral coverage report, the brokerage mentioned that in Q4FY2023, building materials companies saw a healthy beat on net profit as operating profit margins exceeded the estimates driven by easing raw material costs and lower gas prices.

As per the research report, the building materials sector reported a 6.6% y-o-y revenue growth (Century, Supreme and Astral higher beat) led by healthy demand for both piping and wood panel companies. Further, excluding Pidilite and Hi-tech pipes, all companies reported better-than-expected OPM (up 153 bps y-o-y).

The wood panel and piping companies benefitted from easing raw material prices leading to healthy volume growth and OPM expansion. Century Plyboards, Greenlam, Supreme and Astral reported strong beats on OPMs.

Hi-tech reported an in-line performance while Pidilite lagged due to lower-than-expected OPM. Tile companies benefitted from healthy domestic and export demand coupled with lower gas prices. Consequently, Kajaria reported better-than-expected performance.

Thus, overall, building materials positively surprised on net earnings driven by a healthy beat on OPMs in the wood panel and piping companies. Here are the details of the stocks of companies that the broking firm is bullish on.

Company Name	Sharekhan's view	Current Market Price (Rs/share)
Century Plyboards	Buy	611.85
Greenlam Industries	Buy	436.55
Pidilite Industries	Hold	2,700.55
APL Apollo Tubes	Buy	1,289.20
Hi-Tech Pipes	Positive	78.5
Supreme Industries	Buy	2,961
Kajaria Ceramics	Buy	1,260.10
Astral	Hold	2,001.55

However, the broking firm has shared that Century Plyboards, Greenlam Industries,and Supreme Industries are its top preferred picks, from buildings materials space. Also, note that the stock of Greenlam Industries has been put under additional surveillance measure (ASM) by the Securities and Exchange Board of India (SEBI) to enhance market integrity and safeguard the interests of investors.

Disclaimer

The stocks have been picked from the brokerage research of Sharekhan. Greynium Information Technologies, the author or the brokerage house are not liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.