Best Cement Stocks in India 2024

08 April 2024
9 min read
Best Cement Stocks in India 2024
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(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)

Cement is a crucial and versatile building material extensively used in modern construction projects. It securely holds together coarse aggregates such as gravel, sand and steel.

Despite the emergence of alternative building materials, cement remains indispensable in construction due to its exceptional strength and durability. Even infrastructure industries like bridges, dams, roads and urban facilities demand huge cement production. 

The Indian cement sector, an integral part of infrastructure development, has witnessed significant expansion in recent times. 

Cement Industry in India - A Brief Overview

India ranks as the world's 2nd-largest cement producer, contributing over 7% of the global capacity. The cement industry plays a crucial role in supporting various sectors like infrastructure, construction, housing, transportation and power generation. It is actively involved in government initiatives such as housing schemes, building concrete highways, developing smart cities and promoting cleanliness. 

Around 98% of the cement production is managed by private companies, while the public sector holds the remaining share. The top 20 companies control about 70% of India's total cement output. With abundant high-quality limestone deposits across the country, the cement industry shows significant potential for expansion. 

This industry is projected to grow to 4.83 billion tonnes by 2028, with an expected annual growth rate of 4.94% during 2023-28. Additionally, the cement production in India for FY23 stood at 374.55 million tonnes, registering a 6.83% year-on-year increase. Furthermore, it is anticipated that the industry will witness a 7-8% growth in cement production in FY24, driven by investments in infrastructure and residential projects.

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Best Cement Stocks in India 2024 as per Analyst Ratings

Here is a table highlighting the top cement shares in India as per analyst ratings. We have listed the stocks as per these ratings because analysts run a careful analysis of the stock market before rating stocks-

S.No.

Best Cement Stocks in India (as per analyst ratings)

BUY Analyst Rating (in %)

1.

Dalmia Bharat

68

2.

ACC

66

3.

UltraTech Cement

63

4.

JK Cement

50

5.

Ambuja Cements

43

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Top Cement Stocks in India in 2024 as per Market Capitalisation

The following table mentions the best cement stocks in India based on market capitalisation

S.No.

Best Cement Stocks in India (as per market capitalisation)

1.

UltraTech Cement

2.

Ambuja Cements

3.

ACC

4.

Dalmia Bharat

5.

JK Cement

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best Cement Stocks in India as per Analyst Ratings 

Here, you will find a detailed overview of the top cement companies in India based on analyst ratings:

1) Dalmia Bharat

Founded in 1939, Dalmia Cement is a leading Indian cement company based in New Delhi. With 15 plants across 10 states, the company produces 44.6 million metric tons of cement annually.

Apart from this, Dalmia Cement serves over 22 states through a vast network of dealers and sub-dealers. It focuses on both acquisitions and greenfield expansions to grow its business. The company sells different types of cement under 3 main brands: Dalmia Cement, Dalmia DSP and Konark Cement. 

As a leading Indian cement maker and forward-thinking leader, Dalmia Cement aims to increase value sustainably for everyone involved. It is already 14 times water positive than its usage and plans to reach 20 times by 2025. Moreover, it also has the lowest carbon footprint worldwide in the cement industry, earning recognition from the Carbon Disclosure Project.

2) ACC

Established in 1936, ACC has a significant presence in India's building materials industry, with manufacturing and marketing operation units spread across the nation. It operates 18 cement plants and over 82 ready-mixed concrete plants, supported by a skilled workforce, extensive distribution channels and sales offices.

ACC's brand portfolio includes the Gold and Silver ranges, offering superior quality for various construction needs. 

Moreover, its ready-mixed concrete solutions cater to both basic requirements and high-grade concrete for tall structures. It has contributed to iconic landmarks like the Bhakra Nangal Dam and the Mumbai-Pune Expressway.  In 2022, ACC became part of the Adani Group, adding to its diversified portfolio of sustainable businesses. The company's manufacturing units are supported by a central technology support services centre, unique in the Indian cement industry.

3) UltraTech Cement

Ranking as the 3rd largest cement producer worldwide, UltraTech Cement Limited stands out as the only cement company (outside of China) with a manufacturing capacity of over 100 million tonnes per annum. In the white cement segment, UltraTech operates under the brand name Birla White, boasting a capacity of 1.98 metric tons per annum. 

Furthermore, with over 230 Ready Mix Concrete (RMC) plants in more than 100 cities, UltraTech emerges as the leading concrete manufacturer in India, offering specialised concretes tailored to specific customer requirements. Besides India, UltraTech's extensive operations extend across the UAE, Bahrain and Sri Lanka, comprising 24 integrated manufacturing units, 30 grinding units, 8 bulk packaging terminals and one Clinkerisation unit.

Additionally, the company's broad network of over 1 lakh channel partners facilitates market penetration, reaching more than 80% of India.

4) JK Cement

Headquartered in Kanpur, J.K. Cement Limited (JKC) makes and sells cement products and building materials. It makes white cement, grey cement, wall putty, tile adhesive, grouts, wood finishes, and paints. JKC sells its products under various brands like JK Super Cement, which has an extensive production composition that includes Portland Pozzolana Cement (PPC), Ordinary Portland Cement (OPC), and more. 

The company can produce up to 20 million tonnes of grey cement per year, 1.20 million tonnes of white cement per year, and wall putty with a capacity of 1.2 million tonnes per year.

JK White Cement is sold in 43 countries worldwide, and the company operates internationally through subsidiaries like JK Cement Works Fujairah FZC and JK White Cement (Africa) Limited.

5) Ambuja Cements

Ambuja Cements Limited, a prominent cement company in India, is part of the Adani Group, known for its diverse sustainable businesses. Since its inception, Ambuja Cement has focused on providing eco-friendly home-building solutions. Currently, it operates around 6 integrated cement manufacturing plants and 8 grinding units across the country, boasting a cement capacity of 31 million tonnes. 

The company owns cement manufacturing plants in Gujarat, Rajasthan, Himachal Pradesh, Maharashtra, and Chhattisgarh and grinding plants in Punjab, West Bengal, Uttar Pradesh, Uttaranchal, and Himachal Pradesh.

Ambuja Cements’ several innovations, like Ambuja Plus and Ambuja Cool Walls, aim to fulfil customer needs while reducing carbon footprints. Furthermore, Ambuja Cement is recognised for its responsible resource usage, including being water-positive and plastic-negative. Through various initiatives, it actively engages with communities and promotes sustainable development.

Factors to Consider Before Investing in Cement Stocks in India

Here are some crucial factors you must consider before buying the best cement share in India:

  • Financial Performance

You must check how well cement companies are doing financially.  If it is having high sales, keeping costs low and making a good profit, its stock might do well.

  • Supply Chain and Raw Material 

Keep an eye on the prices of materials like limestone needed to make cement, as high costs can lower profits. Moreover, supply chain disruptions can also raise costs for companies.

  • Market Demand

You need to understand that when the economy is doing well, more buildings and roads are built, so there is more demand for cement. However, if construction slows down or fewer people buy houses, the demand for cement drops.

  • Technological Advancements

You must keep up with the new technology innovations that might help cement companies make better or more environmentally friendly products. Companies that innovate can do well in the long term.

  • Environmental Regulations

Be aware that companies have to follow rules to protect the environment, and these rules can affect how much it costs them to operate. Companies that invest in greener practices might do better, which can raise their stock prices.

  • Competition

Know that many companies are competing to sell cement, which can affect prices and a company's performance. New companies might have ways to make cement cheaper or better, which can worry the existing ones.

Should You Invest in Cement Stocks?

Investing in cement stocks in India requires careful consideration of various factors. Cement companies operate in a competitive industry influenced by economic cycles, raw material costs and regulatory changes. While cement stocks may seem promising, their performance can be impacted by market fluctuations and industry dynamics. 

Therefore, conducting thorough research and staying informed about market developments is crucial before making investment decisions in cement stocks. Additionally, periodically reviewing your investment strategy ensures alignment with your financial goals and risk tolerance.

The Bottom Line 

When considering investment options, it is vital to recognise the potential of the cement stocks. These companies play a pivotal role in infrastructure development, making them promising choices for long-term investment.

By staying up-to-date and doing thorough research, you can take advantage of the chances for growth provided by the cement industry in India.

*Stock Selection Criteria for Top Stocks Based on Analyst Rating

Investors must carefully read through the following information on stock selection criteria while running through the stocks based on analyst ratings-

These stocks have been shortlisted as per Analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, further aggregated by Refinitiv. Ratings are determined by analysts' forecasts of company performance, taking into account metrics like earnings per share, sales, and net income. These ratings should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).  

Before investing, investors must conduct independent research and not solely rely on the information provided here. This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance.

*Stock Selection Criteria for Top Stocks Based on Market Capitalisation

These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. 

It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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