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Informist, Friday, Oct. 31, 2025

MUMBAI - Shares of cement companies will continue to move in a tight range in the absence of key near-term triggers for the sector. While valuations of large-cap companies are at reasonable levels, those of mid-cap companies are expensive, analysts tracking the sector said.

Despite the reduction in goods and services tax on cement to 18% from 28%, demand remained muted during the festival season because of an extended monsoon season. However, cement companies are likely to raise prices as demand is expected to pick up after the rains. Gains in cement stocks were limited during the September quarter as construction activity was affected by the monsoon, with cement manufacturers keeping the plants shut for maintenance. As a result, earnings of cement companies are usually weak in the September quarter compared to the Apr-Jun quarter.

Stock-specific movement is likely due to the ongoing earnings season and investors will closely monitor management comments about business outlook, price realisation, demand, and expansion plans. JK Cement is scheduled to report its September quarter result Saturday. The company's net profit is likely to rise 74% on year to INR 2.06 billion and revenue may grow 13% to almost INR 27 billion, according to the average of estimates from seven broking firms. Three major cement companies are scheduled to announce their results next week. Ambuja Cements will detail its results Monday, and Grasim Industries and The Ramco Cements on Wednesday.

ACC and Shree Cement detailed their results this week. ACC Friday posted a whopping 450% on-year growth in its consolidated net profit to INR 11.19 billion and revenue rose 30% to almost INR 59 billion. Shree Cement Tuesday posted an almost 200% on-year rise in its bottom line to INR 2.77 billion and 15% growth in the top line to over INR 43 billion.

TOP HEADLINES
* Earnings Review: ACC Q2 PAT beats mkt view on tax write-back, rise in sales
* Tax dept 'survey action' at Prism Johnson unit; co defers result declaration
* Analyst Concall: Shree Cement says yet to see impact of GST cut on demand
* Earnings Review: Shree Cement PAT surges on higher sales but misses mkt view
* Earnings Outlook: ACC Q2 PAT, sales seen up YoY on higher volumes, low costs
* IPO Alert: Kanodia Cement gets SEBI nod for OFS of up to 14.91 mln shares
* Earnings Outlook: Ambuja Cements Jul-Sept sales seen up, PAT down YoY
* JK Cement commissions 1 mtpa cement grinding facility at Prayagraj unit
* Earnings Outlook: Grasim's Jul-Sept topline seen strong led by chemical ops

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 Ashish Shirke

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