Cement Stocks Outlook
Near-term view cautious but sharp correction unlikely
This story was originally published at 20:18 IST on 11 July 2025
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MUMBAI – Shares of cement companies are likely to be in a tight range next week in the absence of near-term triggers for the sector. While the sectoral outlook remains cautious because of the onset of the monsoon, analysts don't expect a major correction in stock prices on hopes of strong earnings growth.
The earnings season is likely to provide cues for these stocks, which have been consolidating for a few weeks now. Analysts believe the sector is set to report robust earnings growth for the June quarter, supported by better pricing and improvement in the government's capital expenditure. They also expect cement demand to revive after the monsoon season.
In Apr-Jun, pan-India cement prices increased 3% sequentially and 5% on year, led by a 9% rise in price in the southern region and 5-6% growth in the eastern parts, JM Financial Services said in its earnings preview for the sector. Industry players appear to have attempted a further price hike of INR 10–INR 15 per bag across regions in the first week of July, it said. "We believe this attempt may help limit any material price correction during the monsoon," the broking firm said. Its top picks from the sector are UltraTech Cement and J.K. Cement.
During Apr-May, the government's capital expenditure was INR 7.08 trillion, up nearly 24% from the year-ago period. In the financial year 2024-25 (Apr-Mar), the government's spending had slowed down considerably on account of the general election, followed by an extended monsoon, which had affected the earnings growth of many sectors depending on capital expenditure, including cement.
The cement industry is expected to grow 6-7% in FY26, although large players will account for nearly 60% of the total industry capacity, Systematix Institutional Research had said in its report Wednesday. However, the near-term outlook for the sector remains cautious due to monsoon-led slowdown, it said, adding that UltraTech, Ambuja Cements, and J.K. Cement are its top picks. The broking firm also said it will revise its top picks after the June quarter earnings due to the recent surge in valuations.
TOP HEADLINES
* Ambuja Cements arm ACC commissions 1.5-mtpa grinding unit in Jharkhand
* Dalmia Bharat gets nod to reclassify 2 promoter group members as public
* UltraTech says media reports on CCI order against co, arm false, misleading
* Dalmia Bharat receives report on alleged ONGC tender competition violations
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 | 1,982.50 | 0.90 | 2,049.20 | 1,941.60 |
| Ambuja Cements | 587.15 | (-)1.40 | 596.10 | 578.80 |
| Andhra Cements | 66.63 | (-)0.40 | 68.10 | 65.00 |
| Grasim Industries | 2,762.00 | (-)1.60 | 2,826.40 | 2,724.20 |
| J.K. Cement | 6,447.50 | 3.10 | 6,703.20 | 6,230.20 |
| JK Lakshmi Cement | 978.85 | (-)0.30 | 1,018.00 | 955.60 |
| Sagar Cements | 242.58 | (-)1.00 | 249.50 | 237.70 |
| Shree Cement | 31,210.00 | (-)0.30 | 31,790.00 | 30,770.00 |
| UltraTech Cement | 12,495.00 | (-)0.10 | 12,713.00 | 12,343.00 |
| India Cements | 346.55 | 0.70 | 352.20 | 341.50 |
| Nifty 50 | 25149.85 | (-)1.20 | 25393.90 | 25007.00 |
| BSE Sensex | 82500.47 | (-)1.10 | 83259.60 | 82062.70 |
End
Reported by Anjana Therese Antony
Edited by Nishant Maher
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