Best Cement Stocks in India 2024: Meaning, Factors & Benefits
Cement is one of the country’s eight core industries. It is a versatile material that can be moulded to suit any project, and because of this, its usage will continue till the existence of humankind. Thus, if you are still trying to figure out what stocks are included in the list of cement companies in India, then this blog is just for you!
What are Cement Stocks?
Cement stocks are shares of companies that produce cement and other related products used in the construction industry.
The largest cement producers produce and supply cement for buildings, bridges, roads, dams, and other infrastructure projects.
Thus, the NSE cement stocks list provides investors with an opportunity to invest in the potential growth of the Indian cement industry and benefit from the increasing demand for cement products.
List of Top Cement Stocks in India 2024
Here’s the list of the top 10 cement companies in India that stand out in the stock market, along with the current share prices, which you can check anytime.
| Popular Cement Shares in India | Market Cap (in Cr) | Close Price | PE Ratio |
|---|---|---|---|
| UltraTech Cement Ltd | ₹2,78,893.98 | 9,506.25 | 55.07 |
| Grasim Industries Ltd | ₹1,50,569.01 | 2,237.40 | 22.05 |
| Ambuja Cements Ltd | ₹1,34,153.01 | 606.85 | 51.93 |
| Shree Cement Ltd | ₹92,212.84 | 25,296.20 | 72.57 |
| ACC Ltd | ₹46,471.91 | 2,442.45 | 52.51 |
| Dalmia Bharat Ltd | ₹36,705.32 | 1,934.10 | 35.46 |
| JK Cement Ltd | ₹33,162.51 | 4,240.40 | 77.79 |
| Ramco Cements Ltd | ₹19,834.96 | 809.20 | 63.06 |
| RHI Magnesita India Ltd | ₹12,804.25 | 626.30 | -27.47 |
| Birla Corporation Ltd | ₹11,803.54 | 1,488.80 | 291.45 |
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data is from 15th April, 2024. However, for real-time updates on cement stock prices and market trends, visit smallcase stocks collection today!
Cement Industry in India
The cement companies in India are cyclical and heavily influenced by the construction sector. The demand for cement can be directly related to the level of construction activity. As a result, this makes the industry vulnerable to economic downturns.
However, the industry has steadily grown due to increasing infrastructure development and urbanization demand. Thus, the cement industry is fragmented. With many small cap and mid-sized cement companies operating alongside large multinational corporations in India.
Moreover, cement company shares may expose investors to a key sector of the economy. These best cement shares in India can also provide the potential for long-term growth as demand for infrastructure and construction projects rises.
Top Cement Companies in India – Overview
Here is the list of top 10 cement stocks in India.
UltraTech Cement Ltd
UltraTech Cement Ltd. is one of the top cement companies in India and a part of the Aditya Birla Group. With over 116 million tonnes per annum capacity, UltraTech operates 20 integrated plants, 26 grinding units, and 7 bulk terminals. Thus, this best cement stock product is used in infrastructure and construction projects. This includes highways, airports, dams, and residential buildings.
Grasim Industries Ltd
Grasim Industries Ltd. is the Aditya Birla Group’s flagship company. It operates through its subsidiary UltraTech Cement Ltd., which has a production capacity of over 116 million tonnes per annum. Additionally, Grasim is involved in various other industries, such as viscose staple fibre, viscose filament yarn, chemicals, and textiles.
Ambuja Cements Ltd
Ambuja Cements Ltd. is part of the global cement company LafargeHolcim. It is one of India’s leading cement manufacturers. With a production capacity of over 29 million tonnes annually, it potentially operates a network of more than 5,000 dealers. This cement business sells a diverse range of cement, such as Portland Pozzolana cement, ordinary Portland cement, and cement that repels water.
Shree Cement Ltd
Shree Cement Ltd. is the best cement stock in India and operates through its plants in Rajasthan, Uttarakhand, Bihar, and Haryana. The company produces over 44 million tonnes annually and is recognized for its high-quality cement products. Under the list of best cement stocks to buy, Shree Cement’s products are used in infrastructure projects, including highways, airports, and ports.
ACC Ltd
ACC Ltd. is one of the oldest cement manufacturers in India and is a part of the global cement company LafargeHolcim. Thus, the company has a production capacity of over 33 million tonnes annually and operates through a network of over 6,000 dealers and retailers nationwide. ACC’s products can be used in various construction projects.
Dalmia Bharat Ltd
Dalmia Bharat is a leading Indian cement manufacturer known for its sustainable practices and innovative products. It operates a robust cement business with a strong presence in various regions, contributing to the country’s infrastructure growth.
JK Cement Ltd
JK Cement is a leading Indian cement manufacturer known for its high-quality cement products and a strong presence in domestic and international markets. These Nifty cement stocks of a company have a reputation for innovation and sustainable practices in the cement industry. Consider this cement business the second-largest wall putty manufacturer in India.
Ramco Cements Ltd
Ramco Cements is a prominent cement company. The cement manufacturer is usually recognized for its commitment to quality and efficiency. Thus, with a significant market presence, it can play a vital role in the construction and development sectors.
RHI Magnesita India Ltd
RHI Magnesita India is a subsidiary of the global refractory leader RHI Magnesita. Considered one of the leading refractory manufacturers in India. The company specializes in providing high-performance refractory solutions for various industries, including steel, cement, and non-ferrous metals, contributing to India’s industrial infrastructure.
Birla Corporation Ltd
Birla Corporation Limited is a holding company providing diverse products, including cement, jute goods, polyvinyl chloride (PVC) floor coverings, auto trims, and steel castings. With 11 manufacturing units at eight locations, it is a prominent cement manufacturer in India, committed to delivering construction solutions. With a diverse product portfolio and a significant role in the country’s infrastructure, this is included in the list of best cement stocks in India.
Government Initiatives
The cement sector, one of the strongest pillars of the economy, has seen many government initiatives that have boosted the sector. Some of the government initiatives are as follows:
- The government has set up a 25-member council for the cement industry under Dalmia Bharat Group CMD Puneet Dalmia, which aims to reduce the wastage and costs in the industry.
- ‘The PM Gati Shakti-National Master Plan‘ aims to showcase how the country plans, builds, and manages its infrastructure, focusing on multi-modal connectivity.
- Next is the ‘PM Awas Yojna’ of Pradhan Mantri Awas Yojana, a flagship initiative of the Indian government launched in 2015. It’s a credit-linked subsidy scheme that aims to make housing affordable for low—and moderate-income families in urban and rural areas
How to Invest in Indian Cement Stocks in NSE?
Investing in the largest cement producer in the world can be done through various avenues. Firstly, you can explore the best cement stocks to buy or directly invest in individual cement company stocks through a stockbroker or online trading platform. Another option is to invest in exchange-traded funds (ETF) or mutual funds specializing in the construction or infrastructure sector, which often include cement stocks. Additionally, investing in sector-specific stocks is also one of the many options.
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered experts
- smallcase.com offers over 200+ stock portfolios, created by 180+ managers
- Some of the popular smallcases among new investors are as follows:
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Factors Affecting the Best Cement Share Prices
Some factors that can affect the performance of the best cement stocks India are as follows:
- Construction Activity: The demand for the best cement in India is directly related to construction activity. Hence, any change in the construction sector can affect cement stocks share price.
- Economic Growth: The economy’s growth can positively impact the Indian cement industry, as increased economic activity leads to greater demand for infrastructure development. Consequently, this might positively impact all cement share price lists.
- Raw Material Prices: The prices of raw materials used in cement production, such as limestone and gypsum, can affect the cost of production. As a result, the profitability of cement shares list.
- Energy Prices: The cost of energy, particularly coal and power, can impact the profitability of the cement sector stocks list, as energy constitutes a significant portion of their production costs.
- Foreign Exchange Rates: Fluctuations in foreign exchange rates can impact the cost of importing raw materials and equipment, ultimately impacting the profitability of India’s best cement stock.
- Environmental Regulations: The best stocks of cement Indian industry are subjected to various environmental regulations. As a result, it impacts the operations and profitability. Hence, any change in environmental regulation might directly impact cement share price and performance.
- Trade Policies and Tariffs: Changes in trade policies and tariffs can impact the cost of importing and exporting cement. Thus, this ultimately affects the profitability of cement shares & the overall cement business.
Factors to Consider While Investing in Good Cement Stocks
While investing in cement sector share prices, there are several factors that investors should consider to make informed investment decisions. Some key factors to consider are:
- Cyclical Nature of the Industry: Cement is a cyclical industry. This means that economic cycles primarily influence the price and performance of cement stocks. Therefore, before investing, understand the impact of economic cycles on cement demand and the company’s performance.
- Competitive Pressures and Consolidation: The cement industry is highly competitive, with several players competing. Hence, evaluate the best cement stocks in India’s before making investment decisions.
- Exposure to Raw Material and Energy Price Volatility: Cement production is energy-intensive and requires raw materials such as limestone and clay. So, it’s advisable to evaluate the cement company in India’s exposure to raw material and energy price volatility and its ability to manage these risks.
- Regulatory and Legal Risks: Cement companies listed in NSE can be subject to environmental regulations and legal risks, such as fines and penalties for non-compliance. Any change in these regulations can directly impact the top cement share price. Hence, evaluate the companies offering the best cement stocks in India compliance with regulations and its ability to manage legal risks.
Who Should Invest in a Cement Company Listed in NSE?
Investors who are looking for a long-term investment in a cyclical industry with good growth prospects can consider investing in cement stocks. However, one must consider their risk appetite and investment goals before investing in the top cement stocks in India.
What are the Advantages of Investing in the Best Cement Stocks India?
Investing in the best cement stocks in India offers several advantages:
- Stable Demand: Cement is a fundamental building material, with consistent demand driven by infrastructure projects, real estate development, and urbanization.
- Strong Growth Potential: India’s growing economy and increasing infrastructure spending provide a favourable environment for the cement industry, offering the potential for growth in cement stocks.
- Diversification: Cement stocks provide diversification within the industrial sector, helping to balance a portfolio and reduce overall risk exposure.
- Dividend Income: Many cement companies offer regular dividend payouts, providing investors with a steady income stream and potential capital appreciation.
- Inflation Hedge: Cement prices tend to rise with inflation, making cement stocks a potential hedge against inflationary pressures.
- Long-Term Investment: Infrastructure projects and urban development are long-term endeavours, making cement stocks attractive for investors with a long-term investment horizon.
What are the Risks of Investing in Cement Stocks?
Here is a list of risks associated with cement stocks.
- Vulnerable to Economic Cycles: The performance of cement stocks is closely tied to economic conditions. A slowdown in construction activity due to a recession can significantly impact these stocks.
- Fluctuations in Raw Material Prices: Fluctuations in the prices of raw materials like limestone and gypsum can affect the cost of cement production.
- Competition: The cement industry is competitive, with both local and global players competing in the market. This competition can put pressure on pricing power and profit margins.
To Wrap It Up…
Top cement stocks can be a good investment opportunity for long-term portfolio growth. Hence, investing in the largest cement manufacturer in India can be a rewarding experience for investors who take the time to understand the sector and the factors that drive its performance.
However, investing in cement shares via smallcase to avail the benefits of sector specific funds , including diversification, low cost, and expert curation. So, what are you waiting for? Download the smallcase app today and start your investment journey!
FAQs
According to the recent updates, the five best cement stocks to buy include:
(a) UltraTech Cement Ltd
(b) Grasim Industries Ltd
(c) Ambuja Cements Ltd.
(d) Shree Cement Ltd
(e) ACC Ltd
Note: This information is provided for educational purposes and is not intended as a recommendation or endorsement.
You can invest in the top cement companies in India by following the given steps.
1. Open a Demat and trading account with a brokerage firm.
2. Fund your account
3. Research from the cement stock list and choose the cement shares to buy.
4. Place a buy order for the top cement shares in India.
5. Monitor your investments and sell the shares when you are ready to exit.
Since Indian cement stocks are cyclical, the ideal time to invest in them is at the beginning of economic expansion. However, it’s important to do your own research and/or consult a financial advisor before investing in the best stocks in the cement sector index.
The best long-term cement stocks can be suitable for investors who aim to invest longer. Investors should comprehend both the growth potential and challenges confronted by cement companies in India.
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