Cement Stocks Outlook
Most stocks likely to rebound in short term
This story was originally published at 20:04 IST on 12 December 2025
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MUMBAI – Analysts expect most of the large-cap and mid-cap cement stocks to perform better in the week ahead, as they are showing early signs of recovery after the recent bout of profit booking. They also expect some short-term rebound in cement stocks, led by a price correction.
"Cement stocks are at their support levels, and we can expect some short-term rebound," Sundar Kewat, technical and derivatives analyst at Ashika Group, said. The momentum is expected to continue for one or two weeks, he said.
Margins of cement companies are likely to increase 250–300 basis points in 2025–26 (Apr-Mar) with improved realisations, led by volume and premiumisation amid steady selling prices and cost of inputs, according to a report by Crisil Intelligence. The second half of FY26 is expected to see an 8–9% on-year volume rise, driven by pent-up demand from the first half and better liquidity, Crisil Intelligence said in its report.
Average pan-India cement prices are likely to remain rangebound and the reduction in the goods and services tax rate to 18% from 28% is expected to exert downward pressure on retail prices, according to the Crisil Intelligence report. "The average pan-India cement prices saw a modest 3% on-year increase during the first half of this fiscal. However, we anticipate the full impact of the GST reform will be realised in the third quarter, leading to a 4–5% decline in retail prices in the second half of the fiscal," Sehul Bhatt, director of Crisil Intelligence, said.
Nuvama Institutional Equities expects the cement sector to see a demand uptick in rest of FY26 due to pick-up in construction activity, led by higher government spending, the brokerage said in a report. It expects the share prices of cement stocks to be determined by the trajectory of volumes.
"UltraTech Cement has given 3% returns and could see more potential coming in, which could lead the stock to (INR) 12,400–12,800," Kewat said. Shares of UltraTech Cement were up this week, after falling for the previous three weeks. It fell over 2% in this period.
TOP HEADLINES
* Nuvama sees uptick in cement demand in rest of FY26; outlook neutral
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 | 1771.70 | (-)1.50 | 1805.50 | 1753.10 |
| AMBUJA CEMENTS LTD | 548.15 | 2.70 | 558.10 | 532.00 |
| ANDHRA CEMENTS LTD | 73.52 | (-)0.30 | 76.50 | 68.50 |
| GRASIM INDUSTRIES LTD | 2836.70 | 3.30 | 2874.80 | 2777.60 |
| JK CEMENT LTD | 5724.50 | 1.80 | 5909.80 | 5438.80 |
| JK LAKSHMI CEMENT LTD | 780.00 | 4.00 | 796.90 | 764.90 |
| SAGAR CEMENTS LTD | 213.02 | 3.20 | 217.20 | 209.30 |
| SHREE CEMENT LTD | 26285.00 | 0.80 | 26641.70 | 25921.70 |
| ULTRATECH CEMENT LTD | 11723.00 | 1.10 | 11904.30 | 11390.30 |
| INDIA CEMENTS LTD | 414.15 | (-)0.50 | 432.50 | 401.60 |
| NIFTY 50 | 26046.95 | (-)0.50 | 26133.50 | 25895.20 |
| BSE SENSEX | 85267.66 | (-)0.50 | 85545.80 | 84817.70 |
End
Reported by Arundathi A R
Edited by Ashish Shirke
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