Building Materials Sector Analyzed: Motilal Oswal’s Forecast

Motilal Oswal Financial Services (MOFSL) believes the building materials industry – including wood panels and tiles – is about to get a boost. They predict this will happen starting in the second half of financial year 2026 (H2FY26). This is because there’s still not a huge amount of unsold houses and many big building projects haven’t started yet.

Key Points

• India’s real estate growth is expected, boosting building material demand.
• Low housing inventory and delayed project launches will drive increased sales.
• Government infrastructure spending and quality standards (BIS) are positive factors.
• Building materials companies could see improved earnings by FY25-28.
• Motilal Oswal has specific “Buy” ratings for Century Plyboards and Kajaria Ceramics.
• Focus on premium housing trends signal strong potential for branded products.

The government is focusing more on building and housing, and there are many big building projects planned. This means more demand for things like wood and tiles. Also, people are buying more expensive homes, which helps companies selling higher-quality building products.

Several important rules are being put in place to make building materials better. The Bureau of Indian Standards (BIS) wants to make sure that building materials are good quality. This will help companies like Century Plyboards, which make wood panels.

Motilal Oswal has started looking at Century Plyboards and Cera Sanitaryware, giving them a “Buy” and “Neutral” rating respectively. They think Cera Sanitaryware will grow steadily over the next few years.

Overall, Motilal Oswal believes this sector has a good chance of growing, thanks to all these factors. They are optimistic about the future of building materials in India.

“This analysis suggests a solid investment opportunity within India’s expanding infrastructure landscape, anticipating sustained growth driven by key structural trends.”