Cement Stocks Outlook
Weak bias as demand seen tepid on monsoon onset
This story was originally published at 20:45 IST on 3 July 2026
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MUMBAI – Brokerages see cement stocks performing weakly in the following week as demand in the sector remains subdued with the onset of the monsoon while the impact of the four-month-long war in West Asia is expected to be reflected in the sector's earnings growth for the September quarter. Broking firm JM Financial expects cement stocks to remain rangebound over the next few months amid margin uncertainties.
The brokerage sees industry profitability remaining broadly resilient in the June quarter. "However, peak cost inflation (INR 350-INR 400/tonne) coinciding with a seasonally weak quarter could sharply dent profitability in Q2FY27E (Jul-Sept)," the brokerage said in a sector report.
"Stocks are gaining because Q1 (Apr-Jun) volume numbers are good," Tushar Chaudhari, analyst covering the sector at Prabhudas Lilladher, said. He expects the sector to have grown 6.5–7.0% in the June quarter while UltraTech Cement, JK Cement, and Shree Cement are expected to have grown in double digits.
Brokerage Nuvama Institutional Equities expects demand across the sector to remain subdued with the start of the monsoon season. The brokerage sees this limiting the scope for any meaningful price recovery in the September quarter. Petroleum coke prices, which haven't reduced correspondingly with the fall in crude oil prices, and sluggish volumes are seen posing challenges for the sector, according to the brokerage.
Motilal Oswal Financial Services sees a further reduction in petcoke prices with the recent fall in crude oil prices, which will provide relief from high variable costs during the second half of the financial year 2026–27 (Apr-Mar). "Looking ahead, demand will mainly depend on monsoon behaviour. Expectations of lower rainfall remain a key risk," the broking firm said.
"North India remains relatively resilient, led by stronger demand in Delhi and Punjab, as projects delayed by heatwaves are expected to accelerate for timely completion," according to Motilal Oswal.
According to Systematix Institutional Equities, the near-term outlook remains cautious as the sector enters its weakest seasonal quarter. It sees the cost inflation impact from the war in West Asia being visible in the September quarter as well while price hikes in April should support profitability in the near term. "However, recent fall in energy prices would bring back the sanity from H2FY27 (Oct-Mar)," the brokerage said in its cement sector report.
Friday, shares of Nifty 50 cement stock UltraTech Cement ended nearly 2% higher from Thursday's close. The stock was up for the third straight session. It has gained over 4% in this period.
TOP HEADLINES
* CARE Ratings assigns 'AAA' issuer rating on Shree Cement; outlook stable
* Cement volume growth to moderate to 6-7% in FY27 vs 8.6% in FY26, says ICRA
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 | 1,393.80 | 4.20 | 1,421.80 | 1,341.00 |
| Ambuja Cements | 443.40 | 4.60 | 453.40 | 425.00 |
| Andhra Cements | 51.11 | (-)2.40 | 53.70 | 49.60 |
| Grasim Industries | 3,180.90 | 1.70 | 3,242.70 | 3,134.10 |
| JK Cement | 5,495.50 | (-)1.50 | 5,825.80 | 5,303.80 |
| JK Lakshmi Cement | 579.45 | (-)2.60 | 602.50 | 562.60 |
| Sagar Cements | 180.40 | 1.20 | 184.00 | 176.40 |
| Shree Cement | 26,765.00 | 4.00 | 27,318.30 | 26,068.30 |
| UltraTech Cement | 11,723.00 | 2.00 | 11,848.30 | 11,514.30 |
| India Cements | 385.30 | 0.40 | 396.90 | 374.20 |
| Index | Level | |||
| Nifty 50 | 24270.85 | 0.90 | 24426.30 | 24174.70 |
| BSE Sensex | 77763.91 | 0.90 | 78324.70 | 77429.60 |
End
Reported by Arundathi A R
Edited by Rajeev Pai
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