Domestic brokerage Motilal Oswal Securities (MOSL) expects the building products sector to stage a recovery from the second half of FY26, following a prolonged multi-year slowdown that had weighed on industry players.
The anticipated revival is supported by low unsold inventory levels in the real estate market and project launch spillovers from FY25 to FY26, which are expected to drive demand for building materials across categories.
The brokerage highlighted that the industry stands to benefit from multiple structural tailwinds, including sustained real estate growth, the government’s infrastructure push, rising premiumisation trends, increasing urbanisation and the Bureau of Indian Standards (BIS)-led focus on quality that is driving consolidation towards organised players.
Stock calls
MOSL has initiated a buy call on Century Plyboards with a target price of Rs 958 per share, betting on the plywood major’s ability to capitalise on the sector’s turnaround.
The brokerage has reiterated its buy call on Kajaria Ceramics with a target price of Rs 1,252 per share, maintaining its conviction in India’s largest ceramic tile manufacturer.
However, MOSL has taken a more cautious stance on Cera Sanitaryware, initiating coverage with a neutral rating and a target price of Rs 5,842 per share.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Stock market investments are subject to market risks. Readers are advised to consult their financial advisors before making any investment decisions. The views expressed by the brokerage are their own and do not represent the opinions of this publication.
