More Stories

Informist, Friday, Jun. 13, 2025

MUMBAI – Shares of cement companies are expected to consolidate next week, with cement prices expected to be stable in most parts of the country. A gradual improvement in cement demand after the monsoon season will be critical to set the tone for the second half of 2025-26 (Apr-Mar), analysts said.

Cement prices are expected to remain stable even as the monsoon continues to advance across the country. Price hikes, effected in May, have largely sustained in the southern and the central region despite labour shortages and the early onset of monsoon, both of which are slowing the construction activity, according to brokerage firm Nuvama Wealth Management.

Prices are expected to remain stable in the near future, as rains have not yet advanced to northern and central India. Overall, cement prices are likely to remain stable in most parts of the country, according to a brokerage analyst. Rising prices of crude oil due to the Israeli strikes on Iran may lead to an increase in input costs for the sector, as distribution will be hit by the increase in prices of diesel, which is used for transportation.

While monsoon seasonality remains a drag in the short term, the sector's ability to defend prices and manage costs bodes well for margins. As a result, Nuvama expects the cement sector to enter next week with a cautiously optimistic undertone. Market participants will closely watch for signs of demand recovery post-monsoon and any emerging pricing trends in the northern and eastern regions.

Informist had reported earlier this week that dealers and manufacturers reduced prices by INR 10–30 per 50 kg bag in Tamil Nadu and INR 10–20 in Andhra Pradesh and Telangana, aimed at countering subdued demand and intense competition. Companies such as UltraTech, India Cements, and JK Cement were involved in this price correction, with volume-pushing offers seen in Chennai, according to a report by brokerage JM Financial.

Looking ahead, Nuvama expects a muted demand environment to persist next week, with construction activity expected to remain sluggish due to weather-related disruptions. However, this demand softness is unlikely to trigger any immediate price corrections, which is a positive signal for sector stability. The lack of aggressive discounting or price cuts despite slower volume movement underlines the industry's pricing discipline.

On the cost front, the outlook remains positive. Declining prices of key inputs such as pet coke and non-coking coal are likely to ease pressure on production costs. This, coupled with ongoing operational efficiency measures implemented by major players, should help in partially offsetting the impact of weaker volumes on profitability, according to Nuvama.

Analysts from both JM Financial and Nuvama remain cautiously optimistic. They expect subdued volume growth in the first quarter of the current financial year due to monsoon and geopolitical headwinds, but anticipate a recovery in the second half of FY26, supported by government infrastructure spend and rural demand revival.

Nomura has maintained its ratings for the cement sector companies. The brokerage has a 'buy' rating for Ambuja Cements, Ultratech Cement, Shree Cement, and Ramco Cements, while it has maintained a 'reduce' rating for Dalmia Bharat, ACC, and Nuvoco. Friday, ICICI Direct said JK Cement has reached the target price of INR 6,120. The stock has gained 15% in just 14 trading sessions. The brokerage advised investors to hold the stock.  End   

TOP HEADLINES-

* DCM Shriram to acquire Hindusthan Speciality Chemicals for INR 3.75 bln
* ANALYSIS: 3 of 4 cement cos surpass Street's view on PAT, 2 beat sector view
* JK Cement acquires 60% stake in Saifco Cements for INR 1.5 billion

Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:

Reported by Ishaan Sharma

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.