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Informist, Friday, Sept. 12, 2025

 

MUMBAI – Shares of cement companies are likely to remain in a tight range next week as demand is expected to be weak until the monsoon ends, but analysts are optimistic about the medium term with demand likely to pick up after the rains. They also believe the reduction in goods and services tax on cement will support the industry which has seen muted demand because of the government's slower-than-expected capital expenditure and the early onset of the southwest monsoon.

 

The GST Council has lowered the tax on cement to 18% from 28?fective Sept. 22. "Cement companies are expected to pass on the benefit of the GST relief to customers in the near term," a cement sector analyst at a top domestic broking firm said. However, the companies are likely to raise prices later when demand picks up, the analyst added. Cement companies will also benefit from the uptick in the government's capital expenditure, though private-sector capital expenditure is yet to pick up, the analyst said.

 

This week, Emkay Global Financial Services upgraded Shree Cement's rating to "buy" from "add" and raised the target price to INR 35,300 from INR 33,445. The stock is among the broking firm's top picks in the sector, along with UltraTech Cement and J.K. Cement. The company has successfully managed to narrow the pricing gap with the market leaders by INR 5-INR 7 per bag in the past three quarters, Emkay Global said. It estimates the cement manufacturer's earnings before interest, tax, depreciation, and amortisation per tonne to improve to INR 1,400 in the financial year 2025-26 (Apr-Mar), INR 1,520 in FY27, and INR 1,590 in FY28. The company had reported an EBITDA per tonne of INR 1,065 in FY25.

 

Following are the resistance and support levels for key cement 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	1,850.40	1.20	1,862.80	1,840.80
Ambuja Cements	560.55	(-)1.10	571.00	554.60
Andhra Cements	92.41	(-)11.80	92.50	92.40
Grasim Industries	2,802.00	(-)0.10	2,831.90	2,774.10
J.K. Cement	6,555.00	(-)1.20	6,743.00	6,436.00
JK Lakshmi Cement	902.20	(-)2.80	924.70	888.90
Sagar Cements	274.75	(-)6.60	292.80	261.20
Shree Cement	29,580.00	(-)1.50	30,106.70	29,236.70
UltraTech Cement	12,370.00	(-)1.80	12,533.30	12,261.30
India Cements	391.65	(-)0.90	401.30	384.70
Nifty 50	25114.00	1.50	25198.60	24995.80
BSE Sensex	81904.70	1.50	82197.80	81494.80

 

End

 

Reported by Anjana Therese Antony

Edited by Rajeev Pai

 

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