Cement Stocks Outlook
May face selling on worries of high cost, weak demand
This story was originally published at 16:58 IST on 4 September 2026
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MUMBAI – Shares of cement companies may come under selling pressure next week amid concerns about high costs affecting margins in the coming quarters. Demand in the September quarter has been muted because of the monsoon. This might also be a cause for the selling pressure.
"Higher fuel and packaging costs hurt profitability in Q1FY27 (Apr-Jun) and are likely to continue weighing on margins in Q2FY27E (estimated) and Q3FY27E as well. Going ahead, input cost trends, cement prices, and housing/infrastructure demand would remain key earnings drivers," Nuvama Institutional Equities said in a note. The brokerage has a neutral stance on the cement sector.
Data from JM Financial Institutional Equities showed domestic petroleum coke prices have come off highs recently but still remain 29% higher than a year ago, which is likely to affect the margins of cement companies. Further, weak demand is likely to weigh on cement stocks for now. A channel check by JM Financial showed average cement prices in India fell by INR 3 per bag in August compared to the previous month. Amid these concerns, the Nifty Cement index has declined for four consecutive weeks now, down nearly 3% during this period.
However, there are hopes that cement prices will improve once economic activity picks up from the December quarter. This is likely to limit any downside in cement stocks. "We expect demand to improve as the monsoon recedes, supported by the release of pent-up construction activity and a gradual pickup in project execution... expect profitability to improve meaningfully in H2FY27E with likely improvement in cement prices, moderation in input prices, and strengthened operating leverage," JM Financial said.
TOP HEADLINES
* Crisil reaffirms 'A1+' rtg on Shree Cement's INR-10-bln commercial papers
* UltraTech Cement launches INR 18 bln 'Ultravolt' wires, cables business
* DCM Shriram commissions aluminium extrusion plant at Kota
* UltraTech starts commercial production at Bharuch wires, cables plant
* Cement supplies hit on maintenance in South India; price hikes seen in Oct
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 | 1283.80 | (-)1.70 | 1299.00 | 1264.40 |
| Ambuja Cements | 405.00 | (-)1.70 | 409.80 | 401.90 |
| Andhra Cements | 43.36 | (-)1.80 | 43.90 | 42.70 |
| Grasim Industries | 3322.00 | 1.00 | 3372.10 | 3243.10 |
| JK Cement | 5083.50 | (-)1.60 | 5178.80 | 4977.80 |
| JK Lakshmi Cement | 515.70 | (-)4.70 | 527.70 | 506.10 |
| Sagar Cements | 152.86 | (-)6.20 | 158.80 | 149.30 |
| Shree Cement | 23855.00 | (-)0.60 | 24285.00 | 23565.00 |
| Ultratech Cement | 11408.00 | (-)1.60 | 11520.00 | 11236.00 |
| India Cements | 362.50 | (-)2.00 | 367.30 | 355.80 |
| Index | Level | |||
| Nifty 50 | 23897.70 | (-)1.20 | 24043.00 | 23823.20 |
| BSE Sensex | 76515.43 | (-)1.00 | 77005.70 | 76270.30 |
End
US$1 = INR 94.48
Reported by Anshul Choudhary
Edited by Rajeev Pai
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