Gains for building material majors capped by outlook, price rally

Muted revenue growth, price competition and destocking drag Q4FY25 earnings of tile, pipe and wood panel makers, with brokerages signalling further near-term weakness

Muted revenue growth and margin pressures continue to dog listed building material majors. Companies in the pipes, tiles and wood panel segments are facing demand issues, destocking and weak operating leverage that have dented their financials in the fourth quarter of 2024-25 (Q4FY25). Given the weak sentiments, brokerages believe that a rebound in the near term is unlikely. Further, given that there was an average return of 27 per cent in these stocks over the past three months, some of the stocks could face downgrades.

 

BOB Capital Markets says that revenue for its building materials universe grew at a muted