Cement Stocks Outlook
May fall next wk on high valuations, weak demand
This story was originally published at 22:56 IST on 23 May 2025
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MUMBAI – Shares of cement companies may see a slight fall next week amid high stock valuations and the possibility of a partial rollback of price hikes due to weak demand. However, hopes of higher demand from the government once the monsoon season ends are likely to keep any fall limited.
"May-25 has logged an increase in prices across regions (south being the leader followed by east, central and west) on the back of an improvement in demand; however, dealers anticipate a partial rollback of price hikes towards the end of May-25," Nuvama Institutional Equities said in a report Monday.
Nuvama said growth in demand has been slow so far this financial year. However, analysts are positive amid expectations that capital expenditure by the government this year will be much better than the previous year.
The Ramco Cements and Shree Cement reported their earnings earlier this week. Ramco Cements, a major player in South India, reported weak year-on-year performance as its revenue, net profit, and operating profit fell. Also, analysts pointed out the company's stock valuation largely factors in the recent rise in cement prices in South India.
Elara Securities had a 'reduce' rating on the stock with a target price of INR 1,030, Systematix Shares and Stocks had a 'hold' rating with target price of INR 1,053, and Motilal Oswal Financial Services had a 'neutral' rating with target price of INR 1,030. Friday, shares of Ramco Cement closed at INR 1,006.10, up 1.9%.
TOP HEADLINES
* Analyst Concall: Grasim aims double-digit mkt shr for Birla Opus paints FY26
* Earnings Review: Grasim net loss below Street view, revenue rises strongly
* India Cements completes de-bottlenecking initiative at Banswara plant
* Ramco Cements Jan-Mar PAT slumps 74.5% YoY as sales fall 10.5%
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 LTD | 1959.40 | 1.60 | 1983.90 | 1926.70 |
| AMBUJA CEMENTS LTD | 570.90 | 1.30 | 580.80 | 561.30 |
| ANDHRA CEMENTS LTD | 58.83 | 2.00 | 60.20 | 57.10 |
| GRASIM INDUSTRIES LTD | 2659.40 | (-)5.20 | 2781.70 | 2589.90 |
| J.K. CEMENT LTD | 5108.50 | (-)2.70 | 5328.20 | 4948.20 |
| JK LAKSHMI CEMENT LTD | 887.00 | 3.00 | 949.00 | 825.50 |
| SAGAR CEMENTS LTD | 240.80 | 5.10 | 249.40 | 229.80 |
| SHREE CEMENT LTD | 31495.00 | (-)0.40 | 31998.30 | 31138.30 |
| ULTRATECH CEMENT LTD | 11746.00 | (-)1.30 | 11974.70 | 11546.70 |
| INDIA CEMENTS LTD | 332.55 | 4.00 | 344.80 | 320.30 |
| NIFTY 50 | 24853.15 | (-)0.70 | 25087.10 | 24497.10 |
| BSE SENSEX | 81721.08 | (-)0.70 | 82515.90 | 80499.60 |
End
Reported by Anshul Choudhary
Edited by Deepshikha Bhardwaj
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