Cement Stocks Outlook
Seen up next wk; gains may be capped ahead of results
This story was originally published at 19:59 IST on 18 April 2025
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MUMBAI – Shares of cement makers are seen rising next week, but gains are likely to be capped ahead of their March quarter earnings. Among major companies in the sector, Dalmia Bharat will report its earnings on Wednesday.
Dalmia Bharat's volume growth is likely to be hit in the March quarter as the company ended the tolling arrangement with Jaypee last year. Motilal Oswal Financial Services expects Dalmia Bharat's sales volume to rise only 1% on year in Jan-Mar, while several other brokerages are expecting a fall.
The company's consolidated net profit is likely to decline nearly 12% on year to INR 2.78 billion and sales may fall 3% on year to INR 41.68 billion, according to average of estimates by 13 brokerages.
Overall, analysts expect demand to have improved in the March quarter on slight uptick in capital expenditure by the government. HDFC Securities expects cement demand in India in Jan-Mar to rise 7-8% on year as compared with 3-4% rise in Oct-Dec and flattish growth in Apr-Sept.
"Demand reported momentum continuing in Mar-25 after exhibiting green shoots post Dec-24. Capex trajectory, which was subdued in 9mFY25 (Apr-Dec), improved materially in Q4FY25," Nuvama Institutional Equities said in a report on Wednesday. The brokerage said cement prices have risen across India in April, but dealers expect companies to roll back hikes partially towards the end of April.
Shares of cement companies rose this week with Sagar Cements up over 12%. Among others, Andhra Cements, Deccan Cements, Mangalam Cement, and Grasim Industries rose 4-6.5% this week.
TOP HEADLINES
* Dalmia Bharat arm gets provisional attachment order of INR 7.93 bln from ED
* UltraTech Cement to buy 26% stake in AMPIN C&I Power Eight for INR 255 mln
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| ACC | 2061.70 | 2.70 | 2077.00 | 2039.60 |
| Ambuja Cements | 569.80 | 3.90 | 576.60 | 558.70 |
| Andhra Cements | 57.81 | 6.50 | 59.80 | 55.20 |
| Grasim Industries | 2760.70 | 4.10 | 2825.00 | 2654.80 |
| JK Cement | 5060.80 | 2.10 | 5127.70 | 4973.30 |
| JK Lakshmi Cement | 814.40 | 3.20 | 839.00 | 796.30 |
| Sagar Cements | 217.62 | 12.10 | 225.70 | 204.30 |
| Shree Cement | 31000.00 | 3.00 | 31436.70 | 30306.70 |
| UltraTech Cement | 11901.00 | 3.50 | 12129.70 | 11485.70 |
| India Cements | 288.40 | 2.80 | 313.40 | 269.70 |
| Nifty 50 | 23851.65 | 4.50 | 24248.00 | 23100.40 |
| BSE Sensex | 78553.20 | 4.50 | 79896.20 | 75994.20 |
End
Reported by Anshul Choudhary
Edited by Deepshikha Bhardwaj
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