Top 10 Cement Stocks in India 2024- Latest Trends & Analysis | Blinkx (2024)

The cement industry in India plays an important role by supporting sectors like housing, construction, infrastructure, transportation, etc. Apart from supporting widespread construction and development, India's cement sector has experienced significant growth, sustained by a rising infrastructure expansion. India is ranked as the world’s second-largest cement producer, with approximately 7% of global output. Even in the COVID-19 phase, it showed a commendable growth of 7.8% by producing cement from 261 million tons to 262 million tons.

Because of this growth potential, cement stocks can make a good choice for investing. This article will discuss the top 10 cement stocks in India for investors by further addressing why to invest, demonstrating future projections of this sector and understanding the benefits and risks involved with the cement sector stocks.

What are Cement Stocks?

Cement stocks are shares of companies that provide their products and services related to the cement industry. They produce, distribute and sell cement and other related materials used in construction. Cement is widely used in construction because it is irreplaceable because of its durability factors.Even infrastructure sectors, such as bridges, dams, roads, city buildings, etc, require large quantities of cement to be laid down.

Private companies account for approximately 98% of the total amount of cement produced globally, while the remaining 2% is shared within the public sector. The largest twenty firms have 70% control over all cement production facilities in India. Due to the availability of good-quality limestone deposits in different parts of the country, there is a likelihood that this industry will expand further.

Future Projection of the Cement Industry

The cement industry is projected to reach 4.83 billion tons by 2028, growing at an annual rate of 4.94% during 2023-28. Moreover, the cement production in India was 374.55 million tonnes for FY23, which experienced a 6.83% increase. Additionally, it is expected that there will be 7-8% more cement produced in FY24 as investments are made into infrastructure projects such as roads and residential houses. The construction of at least 100 smart cities and multi-modal transportation systems of the highest global standards would also contribute to the growth of this industry.

Best cement shares in India may also offer potential growth over a long-term period as demand for infrastructural development projects continues to rise. Therefore, purchasing cement company stock can give exposure to investors.

Top 10 Cement Stocks in India for 2024

The following is the breakdown of the top 10 cement stocks in India, along with their CMP (Current Market Price), Market Capitalisation, PE ratio and more.

Disclaimer— All the information mentioned above is accurate as of 20th June 2024. However, it is important to conduct research before making any investment decisions in these stocks.

Top Cement Companies in India: Overview

The following is the overview of the above-mentioned cement stock list in terms of growth, working patterns, and profits:

ACC

In 1936, ACC started in India’s building materials industry and now holds a significant share of its production units throughout the country. Supported by an extensive distribution network and a skilful labour force, they have eighteen cement plants and over 82 ready-mixed concrete plants under operation at different locations in India. ACC offers “Gold” and “Silver” ranges, which stand for high-quality products suitable for many construction needs.

• The company has delivered a stock price CAGR of 11% over the last 5 years.
• The company has a return on equity of 11.8% over the last 3 years.
• The company has a good dividend track report and has consistently declared a dividend payout of 28.1 %.
• The company has been reported as almost a debt-free company.

Ambuja Cements

Ambuja Cements Limited, a part of Adani Group, is among the leading cement companies known for their sustainable enterprises. Ever since it was established in 1981, this company has been concentrating on providing environmentally friendly solutions for house construction. Presently, Ambuja Cement has about 6 plants which are fully integrated in production located within various parts of the nation.

• The company has delivered a compounded profit growth of 12% over the last 3 years.
• The company has a good dividend track record and has consistently declared a dividend payout of 25.5 %.
• The company reported a net profit after tax of Rs 1,526 crore in the fourth quarter of FY24.
• The promoter holding of the company has reportedly increased by 7.14% over the last quarter.

UltraTech Cement

Established in 2000, UltraTech Cement Limited is ranked 3rd among the top worldwide cement producers. It is the single company to have achieved this feat other than those in China and holds an annual production capacity exceeding 100 million tonnes. Additionally, more than 80 % of India’s market is reached by over one lakh channel partners belonging to Ultratech’s extensive network.

• The company has delivered a compounded profit growth of 24% over the last 5 years.
• The company has a return on equity of 13% over the last 5 years.
• The company has a good dividend track report and has consistently declared a dividend payout of 21.8%.
• The company has delivered a stock price CAGR of 19% over the last 5 years.

Shree Cements Ltd

Shree Cements Ltd was Founded in 1979 at Beawar in Rajasthan. This company is one of India’s most cost-efficient cement producers. It falls among five of India’s most expensive shares, with a total production capacity of 43.4 MTPA(millions of tonnes per annum), making it the third largest manufacturer in the country.

• The company has delivered a compounded profit growth of 16% over the last 5 years.
• The company has a return on equity of 11% over the last 3 years.
• The company has a good dividend track report and has consistently declared a dividend payout of 19.4 %.
• The company has been reported as almost a debt-free company.

Grasim Industries Ltd

Grasim Industries Limited (GIL) was established at Gwalior on 25th August 1947 and has its headquarters in Mumbai. It has many sectors which are under operation such as Cement with its subsidiaries UltraTech Cement & Aditya Birla Capital that offers financial services.

• The company has delivered a compounded profit growth of 18% over the last 5 years.
• The company has a return on equity of 9% over the last 3 years.
• The company’s stock price CAGR is 22% over the last 5 years.
• The company has delivered a compounded sales growth of 20% over the last 3 years.

Birla Corporation Ltd

Birla Corporation Limited began its operations with jute manufacturing. The company was incorporated as Birla Jute Manufacturing Company Limited in 1919. It acts as a holding company having varied products like Cement, jute goods,PVC floor covering, auto trims, etc. There are 11 manufacturing units situated at eight locations which provide these products. Hence, this business unit also found prominence within our country for providing construction solutions through cement manufacturing facilities.

• CAGR of the stock price is 17% over the last 5 years.
• The company has a return on equity of 7% over the last 5 years.
• The company has a good dividend track report and has consistently declared a dividend payout of 28.4%.
• The company has delivered a compounded profit growth of 11% over the last 5 years.

J K Cements Ltd

J.K. Cement’s operations began with the commercial production of its first unit, Nimbahera, Rajasthan, in May 1975. White cement, grey cement, wall putty, wood finishes and paints are some of the products made by this firm. The company can hold the capacity of producing up to 20 million tonnes per annum of grey cement, and 1.20 million tonnes per annum of white cement, along with Wall putty having a capacity of producing 1.2 million tonnes per annum.

• The company’s stock price CAGR is 31% over the last 5 years.
• The company has a return on equity of 15.8% over the last 5 years.
• The company has a good dividend track report and has consistently declared a dividend payout of 21.1%.
• The company has delivered a compounded sales growth of `20% over the last 3 years.

Dalmia Bharat

Founded in 1939, Dalmia Cement is one of India’s leading cement companies, with ten plants nationwide. The company produces 44.6 million metric tonnes annually and is headquartered in New Delhi. It is a leading Indian cement maker and strives to enhance value creation sustainably. It is 14 times more water positive than it consumes, targeting 20 times by 2025.

• The stock price CAGR of the company is 8% for the last 5 years.
• The company has a return on equity of 6% over the last 5 years.
• The company has a good dividend track report and has consistently declared a dividend payout of 19.1 %.
• The company has delivered a compounded sales growth of `13% over the last 3 years.

The Ramco Cements Ltd

Ramco Cements Limited is a company registered under the Companies Act, 1956, on 3rd July 1957 as a public limited company. It is classified as a non-government company. It has a significant presence in South India and has plans to expand into various regions also. It has a customer-centric approach with a commitment to quality, making it an attractive proposition for investors who want to take advantage of regional market growth.

• The company has delivered a compounded sales growth of 21% over the last 3 years.
• The company has a return on equity of 10% over the last 5 years.
• The company reported a net profit increase of 15% YoY to Rs 393.93 crores in the last quarter of FY24.
• The company’s cement sales increased 22% in FY2024.

Nuvoco Vistas Corporation Ltd

Nuvoco Vistas Corporation Limited was initially incorporated as Infra Cement India Private Limited on 8th February 1999 in Mumbai. Later, the company changed its name to Nuvoco Vistas Corporation Limited. The company is well-known for providing its products and services in the cement industry. Furthermore, the company has a wide network of dealers and sub-dealers who serve construction needs by supplying cement and allied products.

• The company has a good profit growth of 68.1% CAGR over the last 5 years.
• The company has a compounded sales growth of `13% over the last 3 years.
• The book value of the company is Rs. 252.
• The company’s compounded profit growth of 140% over the last 3 years.

How to Invest in Indian Cement Stocks in NSE?

The cement industry holds good potential for growth, and investing in the best cement stocks in India can be a smart move to capitalise money. However, you will require a reliable platform to invest in these stocks. With BlinkX, investing in India’s cement stocks is an easy process. The app allows you to manage your portfolio well, and you can track your investment. The following is the breakdown of the steps you need to follow to invest in the best cement stocks in India through BlinkX.

Step 1: Download the BlinkX app on your phone.
Step 2:If you don’t have an account yet, then sign up for a new one within the app itself|
Step 3:Add money to your BlinkX account using net banking, UPI or any other mode of payment you wish to choose.
Step 4: Look up the cement company’s share that you wish to purchase.
Step 5: Enter the quantity i.e., the number of shares that are to be bought by you. Review order details and confirm transaction completion.

Factors to Consider Before Investing in the Best Cement Share Prices

The cement industry is a very important sector in the Indian economy. When you invest money to buy shares of cement companies, some factors affect this industry’s performance and share price. Therefore, as an investor, you should be aware of these factors to avoid the chances of incurring losses. The following is the list of these factors:

1. Competition:Many cement companies in India compete with each other, which results in affecting the performance of the company you choose to invest in. Therefore, you should check which cement companies are the best before investing.
2. Demand:More buildings and roads are made when the economy is doing well. This results in higher demand for cement. But if construction slows down, the demand for cement drops. You should be aware of these factors and track them continuously before investing.
3. Technology:Companies that use new technologies to make better or eco-friendly cement products can do well in the long run. You should look for technologically advanced companies.
4. Raw material costs:Making cement requires raw materials like limestone and clay. If the prices of raw materials increase, it affects the company's costs. Check how the company manages these risks, then invest.
5. Economic cycles:The cement industry depends on economic cycles. When the economy is good, cement demand is high. When the economy is not doing well, cement demand is low. Understand how economic cycles impact the company's performance before investing.

Who Should Invest in a Cement Company Listed in NSE?

If you are investing with long-term financial goals with good prospects for growth, then investing in cement stocks is the best choice. However, it is important to note that these investments carry high risks. Thus, one should first determine their risk tolerance and investment objectives before purchasing any shares of the best cement stocks in India.

Cement firms compete in a highly cyclical sector affected by changes in economic conditions, fluctuating raw material prices, and government regulations. While they might appear attractive initially, market volatility and industry dynamics can greatly affect their performance over time. Hence, such factors need to be keenly monitored periodically.

Before deciding to purchase cement company shares as part of your portfolio allocation strategy, take time for thorough due diligence into the stocks of the cement company. This will help you to get familiar with every twist and turn which may occur.

Risk & Advantages of Investing in the Cement Stocks in India?

Below are some benefits and risks listed that come with investing in the cement sector stocks:

Conclusion
India provides great investment opportunities in cement stocks due to the country’s strong infrastructure growth and increasing need for housing as well as commercial projects. The consumption of cement is projected to rise further as per IBEF projections, which indicate that this trend will continue with 2025, seeing 550-600 million tons of cement being used. This ultimately leads to the rise of this industry. Investors should research extensively before taking any chances, make sure they understand their risk appetite, and seek advice from professionals, among other things necessary while making investments. Investors are also advised to consider using reliablestock trading apps when dealing with such sectors by staying updated about what is going on around in this industry. This might give opportunities for better investment decisions.