More Stories

Informist, Friday, Aug 8, 2025

MUMBAI – Movement in shares of cement companies is likely to remain subdued in the near term due to the absence of key triggers for the sector. Demand remains muted in the seasonally-weak September quarter and also, there was price moderation in July due to the early onset of monsoon, an analyst tracking the sector at a domestic broking firm said. However, cement companies have been adopting cost efficiency measures to aid their profitability and are also looking at mergers and acquisitions for capacity expansion, the analyst said. 

Cement prices in the southern parts of India declined by INR 5-INR 8 per 50 kilogram bags in July. However, prices are likely to rise post monsoon as demand is expected to improve during the festival season. The analyst was bullish about the sector's medium-to-long term performance. Cement companies had increased prices almost evey month between December and April, but analysts were worried that these prices were not getting absorbed due to lower demand.

Analysts also hoped that the government's capital expenditure will gather pace in the second half of 2025-26 (Apr-Mar), which could drive capex-heavy sectors, including cement. The June quarter earnings season has not provided major positive cues for investors. Even though most cement companies reported strong on-year growth in net profit and revenue, their operating performance was weak. 

Grasim Industries Friday reported a net loss of INR 1.18 billion, as its expenses were higher than revenue. This was lower than the Street's expectation of a net loss of INR 2.48 billion but sharply wider than the net loss of INR 521.2 million in the year-ago period. Its top line for the June quarter increased almost 34% on year to INR 92.23 billion, but was lower than the total expense of INR 95.23 billion. 

TOP HEADLINES
* Earnings Review: Grasim Apr-Jun net loss below estimate, revenue up 34% YoY

* Earnings Outlook: Grasim net loss may continue on EBITDA fall; sales seen up
* IPO Alert: JSW Cement raises INR 10.80 bln from anchor investors
* Dalmia Bharat arm gets CCI approval to acquire Jaiprakash Associates
* Earnings Review: Shree Cement PAT surges on low input costs, tops estimate
* IPO Alert: JSW Cement sets price band at INR 139-INR 147 per share
* Earnings Outlook: Demand, prices, costs to favour Shree Cement's Q1 PAT rise
* Earnings Review: Ramco Cement reports a sharp rise in Q1 net profit

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:

End

Reported by Anjana Therese Antony
Edited by Tanima Banerjee

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.