Cement Stocks Outlook
Seen in a range next week as valuations high
This story was originally published at 20:40 IST on 2 May 2025
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MUMBAI – Shares of cement companies are seen in a range next week because of high valuations. Companies that have recently announced earnings for Jan-Mar show that cement prices have increased sequentially, but they remain below last year's levels.
Earlier this week, industry-major UltraTech Cement said its sales realisation rose nearly 2% on quarter in Jan-Mar, but it was still more than 2% lower from the previous year. Ambuja Cements also said its realisation was up 2.5% on quarter, but down 2% on year.
Going forward, analysts expect companies to consider further price hikes but they are still concerned about the prices hikes hurting demand, which may even push the companies to roll back the price hikes. "...we may not see further price hikes in May unless demand grows in double digits," brokerage Prabhudas Lilladher said in a report Friday.
Prabhudas Lilladher pointed out that prices hikes taken in April have hurt demand in some regions. "Among key markets, Chennai and Hyderabad witnessed steep price hikes of Rs 30–40/bag, which dealers reported led to a decline in sales," the brokerage said.
Part of price hikes taken in the north had to be rolled back as heatwaves impacted demand. "An initial price hike of Rs20/bag was implemented (in Delhi) in Apr; however, due to a heatwave impacting demand, Rs10/bag of the hike has been rolled back," the brokerage said.
TOP HEADLINES
* Ambuja Cements gets BSE, NSE observation letters for Penna Cement merger
* Ambuja Cements commissions 2.4 mtpa unit in Bengal, ups capacity to 100 mtpa
* Analyst Concall: On track to cut cost to INR 3650/tn by FY28: Ambuja Cements
* Earnings Review: Ambuja Cements consol PAT down on tax costs, but beats view
* Analyst Concall: UltraTech says high summer heat may hit Apr-May volume
* Earnings Review: UltraTech consol PAT up on high volume, EBITDA; misses view
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 | 1864.10 | (-)3.80 | 1914.60 | 1835.20 |
| Ambuja Cements | 531.70 | (-)3.10 | 549.20 | 518.50 |
| Andhra Cements | 56.72 | (-)0.40 | 57.50 | 55.60 |
| Grasim Industries | 2718.30 | (-)0.60 | 2804.60 | 2652.60 |
| J.K. Cement | 5162.00 | (-)1.60 | 5235.70 | 5066.70 |
| JK Lakshmi Cement | 765.85 | (-)4.20 | 789.50 | 750.90 |
| Sagar Cements | 214.54 | (-)2.50 | 225.70 | 206.90 |
| Shree Cement | 29335.00 | (-)4.00 | 30225.00 | 28535.00 |
| Ultratech Cement | 11644.00 | (-)4.90 | 11894.00 | 11356.00 |
| India Cements | 305.70 | 6.20 | 316.70 | 297.80 |
| Nifty 50 | 24346.70 | 1.30 | 24742.10 | 24040.80 |
| BSE Sensex | 80501.99 | 1.60 | 81625.50 | 79606.80 |
End
Reported by Anshul Choudhary
Edited by Ashish Shirke
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