Cement Stocks Outlook
Likely to remain rangebound next week on muted demand
This story was originally published at 21:20 IST on 5 September 2025
Register to read our real-time news.Informist, Friday, Sept. 5, 2025
MUMBAI - Shares of cement companies are expected to remain in a tight range next week as there are no major changes in cement prices and demand is muted due to the ongoing monsoon season. Some analysts believe the market has factored in the optimism related to the government's goods and services tax rationalisation and will now wait for the government's capital expenditure to push demand post monsoon.
"When we spoke to some of the regional cement players, they are seeing decent demand growth...majorly led by the government capex," a cement analyst at a domestic broking firm said. There is some revival in the government's capital expenditure, which had taken a back seat last year, the analyst said. "There are selective commentaries we are hearing on private capex revival, but we are yet to see that on a broad standpoint."
This week, the government reduced the GST on cement to 18% from 28%, effective Sept. 22. Cement companies are expected to pass on the benefits of the GST relief to customers and will likely reduce prices by INR 25-INR 30 per 50-kg bag, the analyst said. Informist had this week reported that cement companies are unlikely to hike price this month. They had planned a price hike of INR 40-INR 50 per 50-kg bag in September, but weak demand refrained them from doing so, dealers had told Informist.
The cement sector typically operates under a dual pricing mechanism – companies bill dealers at invoice prices and subsequently extend price discounts, thereby determining the effective wholesale selling price, JM Financial Services said in a report Thursday. "Ahead of the revised (GST) rate implementation, dealers are likely to maintain lean inventory levels. However, rate cut is supportive for housing demand over the medium to long term."
TOP HEADLINES
* Ramco Cements commissions 8-MW waste heat recovery system in Tamil Nadu unit
* Cement cos unlikely to hike prices in Sept on rains, weak demand - Dealers
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 | 1829.00 | 1.50 | 1858.60 | 1804.00 |
| AMBUJA CEMENTS LTD | 566.70 | 0.60 | 577.50 | 557.10 |
| ANDHRA CEMENTS LTD | 104.76 | 22.70 | 104.80 | 104.70 |
| GRASIM INDUSTRIES LTD | 2804.00 | 1.00 | 2860.60 | 2757.80 |
| J.K. CEMENT LTD | 6634.00 | (-)4.50 | 6947.70 | 6298.70 |
| JK LAKSHMI CEMENT LTD | 927.85 | 0.70 | 953.80 | 912.20 |
| SAGAR CEMENTS LTD | 294.20 | 15.40 | 303.90 | 285.10 |
| SHREE CEMENT LTD | 30040.00 | 2.60 | 30366.70 | 29506.70 |
| ULTRATECH CEMENT LTD | 12601.00 | (-)0.30 | 12831.00 | 12415.00 |
| INDIA CEMENTS LTD | 395.20 | 3.60 | 408.60 | 387.00 |
| NIFTY 50 | 24741.00 | 1.30 | 24942.40 | 24520.90 |
| BSE SENSEX | 80710.76 | 1.10 | 81404.90 | 79974.10 |
End
Reported by Anjana Therese Antony
Edited by Ashish Shirke
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. 2024. All rights reserved.
To read more please subscribe
Share this Story:
