Cement Stocks Outlook
Likely to move in small range till monsoon ends
This story was originally published at 19:13 IST on 22 August 2025
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MUMBAI - Shares of cement companies are likely to move in a small range till the end of the ongoing monsoon season as construction activities are weak at the moment, analysts said. However, they remain optimistic about the medium-term movement in these shares on hope of a pickup in the government's capital expenditure, infrastructure-related activities, and likely higher prices post monsoon.
The government's recently-announced goods and services tax reforms are unlikely to bring any major positives for the cement sector in the near term, analysts said. Media reports said cement is likely to be taxed at 18%. Cement, despite not being a luxury good, currently falls under the 28% GST slab. The group of ministers Thursday approved the Centre's proposal to shift to a two-slab GST structure, such as 5% and 18% and remove the 12% and 28% slabs.
While the near-term movement of cement stock is likely to be muted, analysts said valuations are at reasonable levels and no major corrections are anticipated. The earnings season has also not provided any major surprise for the sector even though most companies posted strong financial growth for the June quarter.
The top four listed cement companies in India--ACC, Ambuja Cements, Shree Cement, and UltraTech Cement--posted strong growth in key earnings metrics for the June quarter. The aggregate revenue of four cement companies in the Nifty 200 index grew 14% on year in the June quarter, largely in line with the 13% rise expected for the sector, according to Informist's analysis. However, the 38% on-year rise in the overall adjusted net profit failed to meet the 44% growth expectation.
TOP HEADLINES
* Promoter to sell 6.49% shr in India Cements via OFS, floor price INR 368/shr
* UltraTech board approves selling up to 6.49% stake in India Cements via OFS
* Tax dept reduces tax demand on Shree Cement to INR 2.2 bln from INR 5.9 bln
* Ramco Cements sees construction chemicals revenue at INR 20 bln in 4-5 yrs
* JK Cement board OKs INR 48.05 bln for greenfield capacity expansion
* IPO Alert: JSW Cement closes at INR 146.07 on NSE, tad down from issue price
* CRISIL reaffirms UltraTech rating on debt instruments, bank loan to AAA
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 | 1821.10 | 2.20 | 1875.80 | 1790.80 |
| AMBUJA CEMENTS LTD | 577.15 | (-)0.20 | 595.10 | 567.10 |
| ANDHRA CEMENTS LTD | 73.35 | 18.10 | 76.10 | 68.70 |
| GRASIM INDUSTRIES LTD | 2813.80 | 1.80 | 2911.80 | 2752.40 |
| J.K. CEMENT LTD | 6841.00 | (-)2.30 | 7341.70 | 6561.70 |
| JK LAKSHMI CEMENT LTD | 925.05 | 3.10 | 958.30 | 901.90 |
| SAGAR CEMENTS LTD | 241.20 | 7.30 | 247.50 | 234.90 |
| SHREE CEMENT LTD | 30005.00 | (-)1.30 | 31128.30 | 29348.30 |
| ULTRATECH CEMENT LTD | 12589.00 | 2.20 | 12973.00 | 12371.00 |
| INDIA CEMENTS LTD | 376.50 | 2.10 | 402.80 | 360.40 |
| NIFTY 50 | 24870.10 | 1.00 | 25163.70 | 24712.30 |
| BSE SENSEX | 81306.85 | 0.90 | 82232.60 | 80828.90 |
End
Reported by Anjana Therese Antony
Edited by Akul Nishant Akhoury
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