Cement Stocks Outlook
Weak demand seen weighing on limited near-term gains
This story was originally published at 20:22 IST on 4 July 2025
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MUMBAI – Shares of cement companies are likely to see limited gains due to muted demand, which is unlikley to recover in the near term, as the onset of monsoon typically slows down construction activities. Prices, too, are expected to remain soft in the seasonally weak September quarter, an analyst tracking cement and construction companies at a domestic broking firm said. After increasing cement prices for at least four months from December, some players reduced prices in southern India due to weak demand.
However, the analyst is optimistic about the medium-to-long term growth prospects for the sector, particularly on hopes of more capital expenditure by the government and boost in construction activities post monsoon. This will boost cement volume and prices in the current financial year. The outlook for the sector remains optimistic in 2025-26 (Apr-Mar) compared with the previous year on low base caused by slowdown in the government's capital expenditure. During Apr-May, the government's capital expenditure was INR 7.08 trillion, much higher than the INR 5.71 trillion spent in the year-ago period.
Echoing similar views, Nuvama Institutional Equities said it was optimistic about the cement sector in the long term. "Various cost-efficiency measures undertaken by players along with softening fuel prices should help in keeping costs under check," it said in its research report.
This week, most cement stocks saw minimal gains, with Ambuja Cements gaining the most, up almost 4%. On the other hand, Grasim Industries fell the most, down almost 2%. Investors' focus will turn to the June quarter earnings season starting next week. They will closely watch for management comments on demand outlook, cost-efficiency measures, pricing expectations, and competition in the sector.
TOP HEADLINES
* PRESS: Adani group to consolidate cement operations under one entity
* Shree Cement arm declared preferred bidder for limestone block in Rajasthan
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 change in % | Resistance | Support |
| ACC LTD | 1965.00 | 2.30 | 2011.90 | 1923.10 |
| AMBUJA CEMENTS LTD | 595.75 | 3.60 | 608.40 | 582.40 |
| ANDHRA CEMENTS LTD | 66.88 | (-)0.40 | 69.20 | 65.40 |
| GRASIM INDUSTRIES LTD | 2805.90 | (-)1.90 | 2838.20 | 2769.60 |
| J.K. CEMENT LTD | 6252.00 | (-)1.30 | 6393.30 | 6154.30 |
| JK LAKSHMI CEMENT LTD | 982.10 | 10.80 | 1013.00 | 955.50 |
| SAGAR CEMENTS LTD | 244.96 | 2.40 | 252.20 | 239.70 |
| SHREE CEMENT LTD | 31315.00 | 0.90 | 31755.00 | 30955.00 |
| ULTRATECH CEMENT LTD | 12506.00 | 2.40 | 12664.00 | 12262.00 |
| INDIA CEMENTS LTD | 344.20 | 0.60 | 352.50 | 334.60 |
| NIFTY 50 | 25461.00 | (-)0.70 | 25559.60 | 25282.40 |
| BSE SENSEX | 83432.89 | (-)0.70 | 83770.90 | 82846.80 |
End
Reported by Anjana Therese Antony
Edited by Akul Nishant Akhoury
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