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Informist, Friday, Jul. 10, 2026

MUMBAI – Analysts expect cement stocks to remain range-bound in the near term amid weak demand, which is expected to weigh on June-quarter earnings. Stock movements are likely to be driven largely by Apr-Jun earnings announcements. Most brokerages expect the profitability of cement companies under their coverage to decline. 

Friday, the Nifty Cement closed 1.4% higher at 15292.80. However, during the week, the index declined 0.5%, underperforming the benchmark indices.

"The Nifty Cement index is trading on the verge of a bullish breakout from its past two-month-long consolidation range," Vipin Kumar, assistant vice president of research at Globe Capital Market, said. "A decisive close above the 15500 level could lead it toward 16000, followed by 16500 in the near term. Hence, we suggest that traders selectively add long positions in this space on dips."

Broking firm Elara Capital expects earnings before interest, tax, depreciation, and amortisation per tonne of the cement companies under its coverage to remain broadly stable as the price hikes implemented at the start of Apr-Jun should largely offset the impact of higher fuel costs. "Looking ahead, we expect peak fuel cost inflation to flow through the P&L (profit and loss) in Q2FY27 (Jul-Sept), coinciding with the seasonally weak demand period," according to the report.

The brokerage sees profitability of the companies under its coverage to fall around 10% on a year-on-year basis, as benefits from around 6% on-year volume growth and around 3% on-year improvement in realisation are likely to be offset by a 5% on-year increase in operating cost. The brokerage expects EBITDA to fall by around 2% on year and net profit to decline by around 10% on year.

Brokerage JM Financial expects EBITDA of cement companies under its coverage to decline by 1% on-year, with higher realisations largely offsetting the impact of elevated operating costs. The industry volume likely grew in high single digits on-year during the quarter, with coverage companies, particularly UltraTech Cement, Shree Cement, JK Cement, and JSW Cement, likely to outperform, delivering over 10% on-year volume growth, the brokerage said in its report. It also expects the recent decline in petcoke prices to largely reflect in the December quarter.

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The 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:

End

Reported by Arundathi A R

Edited by Saji George Titus

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