Cement Stocks Outlook
Seen in tight range near term on weak demand
This story was originally published at 20:19 IST on 29 August 2025
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MUMBAI – Shares of cement companies are likely to trade within a narrow range next week as the sector lacks major triggers amid subdued construction activity during the ongoing monsoon. Although cement prices dipped slightly in August in eastern and southern India, analysts at two domestic brokerage firms expect a sharp price increase once the monsoon season concludes.
This outlook is based on hopes of increased government capital expenditure and a revival in infrastructure activity, analysts said. Companies are also looking for mergers and acquisitions to expand capacity, preferring this route over building from scratch and committing to large-scale investments, according to analysts.
Cement companies had increased their prices since December 2024 on hope of a rise in demand. However, they reduced prices in the June quarter as the earlier price hikes were not getting absorbed. The early onset of monsoon was a near-term hit on the sector, which has been keeping the movement in share prices of these companies in a tight range.
Demand remains subdued across most regions due to the ongoing severe monsoon and flood-like situations, Systematix Institutional Equities said in its report Thursday. Dealers do not expect an immediate rise in demand even if the goods and services tax on cement is reduced. However, they are hopeful that it will improve consumer confidence over time, the broking firm said. The GST on cement is expected to be reduced from the current 28% to 18%, a move likely to boost both demand and prices.
Cement was among the few sectors which reported a double-digit on-year earnings growth for the June quarter. However, they failed to meet the market's view on bottom line growth for the sector. Revenue of the top four listed cement companies in India-- ACC, Ambuja Cements, Shree Cement, and UltraTech Cement--grew 14% on year and adjusted net profit rose 38% on year. While the overall revenue growth was largely in line with expectations, the bottom line growth was below the Street's estimate.
TOP HEADLINES
* Adani group mulls buying Shree Digvijay Cement's plant, port, sources say
* UltraTech Cement sells 5.89% stake in India Cements via OFS on Thu, Fri
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
Company | Price | Week-on-week | Resistance | Support |
ACC LTD | 1801.80 | (-)1.10 | 1826.20 | 1784.80 |
AMBUJA CEMENTS LTD | 563.20 | (-)2.40 | 573.30 | 554.90 |
ANDHRA CEMENTS LTD | 85.40 | 16.40 | 87.30 | 83.60 |
GRASIM INDUSTRIES LTD | 2775.60 | (-)1.40 | 2813.80 | 2743.60 |
J.K. CEMENT LTD | 6946.50 | 1.50 | 7074.80 | 6835.80 |
JK LAKSHMI CEMENT LTD | 921.15 | (-)0.40 | 940.20 | 901.80 |
SAGAR CEMENTS LTD | 254.96 | 5.70 | 262.60 | 248.00 |
SHREE CEMENT LTD | 29275.00 | (-)2.40 | 30191.70 | 28751.70 |
ULTRATECH CEMENT LTD | 12640.00 | 0.40 | 12838.00 | 12422.00 |
INDIA CEMENTS LTD | 381.50 | 1.30 | 388.90 | 377.20 |
NIFTY 50 | 24426.85 | (-)1.80 | 24635.80 | 24300.30 |
BSE SENSEX | 79809.65 | (-)1.80 | 80523.00 | 79385.10 |
End
Reported by Anjana Therese Antony
Edited by Subhojit Sarkar
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