Cement Stocks Outlook
Weak; pan-India fall in prices seen hitting Q3 margins
This story was originally published at 22:07 IST on 28 November 2025
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MUMBAI – Cement stocks are likely to come under selling pressure in the near term with the sector facing many negative factors. Prices of cement across the country fell in November but demand failed to pick up as construction activity remained muted. Liquidity constraints and delays in the flow of government funds also weighed on demand.
"While a few markets saw marginal improvement, overall recovery was slower than expected at the time of GST 2.0 (the goods and services tax cut) implementation," brokerage Prabhudas Lilladher said in a report. Elara Securities said prices fell across the country as weak demand and competition limited the ability of manufacturers to sustain prices. The average trade cement price fell INR 3 per bag pan-India to INR 335, as per the brokerage.
On the earnings front, higher petcoke costs and depreciation of the rupee are likely to limit any meaningful recovery in margins of cement manufacturers, Elara Securities said. Margins may even decline in the December quarter, introducing a negative bias to earnings estimates, it said.
In the September quarter, the cement companies within the Nifty 200 universe were the top performers. These firms fared well in a seasonally weak quarter primarily on the back of higher prices, according to analysts. The aggregate net profit of the four cement companies that are part of the Nifty 200 tripled on year against expectations of a 64% rise. Their aggregate revenue growth of 21% also surpassed analysts' consensus estimate of a 15% uptick for the quarter.
This week, shares of cement companies saw mixed performance, with J.K. Cement rising the most, up over 2%, and Grasim Industries gaining the least, up under 0.2%. JK Lakshmi Cement and India Cements fell the most, nearly 5% and 3%, respectively.
TOP HEADLINES
* Ishares Core MSCI buys 0.5% stake in ACC for INR 1.88 bln
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 | 1,850.60 | 1.10 | 1,881.50 | 1,831.50 |
| Ambuja Cements | 550.20 | 0.50 | 555.10 | 543.70 |
| Andhra Cements | 72.00 | (-)2.50 | 76.40 | 67.10 |
| Grasim Industries | 2,739.40 | 0.20 | 2,758.80 | 2,717.80 |
| J.K. Cement | 5,758.00 | 2.40 | 5,881.30 | 5,674.30 |
| JK Lakshmi Cement | 758.85 | (-)4.50 | 776.40 | 748.30 |
| Sagar Cements | 216.62 | (-)1.60 | 219.90 | 211.40 |
| Shree Cement | 26,400.00 | (-)0.30 | 27,070.00 | 25,990.00 |
| UltraTech Cement | 11,600.00 | (-)1.10 | 11,682.00 | 11,516.00 |
| India Cements | 392.80 | (-)2.70 | 403.60 | 385.90 |
| Nifty 50 | 26202.95 | 0.50 | 26327.10 | 26110.40 |
| BSE Sensex | 85706.67 | 0.60 | 86143.50 | 85359.40 |
End
Reported by Simran Rede
Edited by Rajeev Pai
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