Cement Stocks Outlook
Seen in tight range next week; near-term cues weak
This story was originally published at 20:18 IST on 20 June 2025
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MUMBAI – Shares of cement companies are likely to see limited movement next week in the absence of key triggers for the sector. According to an analyst at a domestic brokerage, the near-term outlook remains weak owing to subdued demand, soft pricing, and rising crude oil prices. Though cement companies have raised prices of 50 kg bags at least four times since December, some of them, particularly those operating in southern India, had rolled back some of the hikes in early June owing to weak demand and disruptions caused by the onset of the southwest monsoon.
However, a recovery in demand is anticipated in the remainder of the financial year 2025-26 (Apr-Mar), supported by improved execution of the Pradhan Mantri Awaas Yojana–Gramin and increased spending on irrigation, Elara Securities said in its research report Tuesday. "Capacity addition should continue, resulting in range-bound utilization pan-India," it said. Usually cement stocks turn range-bound after July and remain so till February, as per Elara's analysis. From a long-term perspective, the brokerage prefers UltraTech Cement, Shree Cement, and Star Cement, and recommends J.K. Cement in case of a decline.
Echoing the bullish view, Nuvama Institutional Equities said the outlook for the sector is improving and volumes and prices are likely to grow in the future, aided by the low base of FY25 and increase in the government's capital expenditure. As per data from the Controller General of Accounts, the government's capital expenditure for FY25 was INR 30.36 trillion, higher than the INR 27.29 trillion in FY24. Nuvama's top pick in the sector is J.K. Cement, which closed 2.1% lower Friday at INR 5,693.50 on the National Stock Exchange. "Going ahead, sustainability of prices remains a key monitorable as we enter the seasonally weak monsoon period," it said in its research report Tuesday.
This week, UltraTech Cement gained the most, rising 2%. The stock closed 0.3% higher Friday at INR 11,458. India Cements was the worst hit, falling more than 8% this week.
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:
Company | Price | Week-on-week | Resistance | Support |
ACC | 1,823.00 | (-)1.30 | 1,843.80 | 1,803.00 |
Ambuja Cements | 533.45 | (-)1.70 | 539.70 | 525.30 |
Andhra Cements | 66.50 | (-)0.10 | 69.10 | 64.90 |
Grasim Industries | 2,712.60 | 1.80 | 2,759.40 | 2,659.60 |
J.K. Cement | 5,693.50 | (-)6.40 | 6,008.80 | 5,461.80 |
JK Lakshmi Cement | 818.00 | (-)1.70 | 832.10 | 795.00 |
Sagar Cements | 228.76 | 1.20 | 243.20 | 212.40 |
Shree Cement | 28,875.00 | (-)2.50 | 29,971.70 | 28,041.70 |
UltraTech Cement | 11,458.00 | 2.10 | 11,606.00 | 11,296.00 |
India Cements | 306.15 | (-)8.10 | 333.00 | 283.60 |
Nifty 50 | 25112.40 | 1.60 | 25363.30 | 24658.20 |
BSE Sensex | 82408.17 | 1.60 | 83246.60 | 80904.00 |
End
Reported by Anjana Therese Antony
Edited by Subhojit Sarkar
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