Try to picture a world without cement.
No towering skyscrapers, no sturdy bridges, no sprawling highways. Without cement, the very foundation of modern civilization would crumble.
Doubtlessly, it is the unsung hero of the construction industry, the glue that holds together the bricks and blocks that make up our cities and towns. Since it’s a versatile material that can be moulded and shaped to fit any project’s needs, its usage will continue till the existence of humankind.
Hence, as an investor, it is imperative that one understands the importance of having cement stocks NSE in your portfolio. However, if you are still trying to figure out what stocks are included in the list of cement companies in India, their benefits, and the factors you should consider while investing in them, 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, which is a binding material used in the construction of various structures, including buildings, bridges, roads, dams, and many other infrastructure projects.
Cement stocks in NSE provide investors with an opportunity to invest in the growth potential of the Indian cement industry and benefit from the increasing demand for cement products.
List of Top Cement Stocks in India 2023
Here’s the list of the top 10 cement companies in India:
|Popular Cement Shares in India||Market Cap (in Cr)||Share Price|
|UltraTech Cement Ltd||₹2,39,190.36||₹8,262.4|
|Grasim Industries Ltd||₹1,17,571.55||₹1,811.5|
|Shree Cement Ltd||85,876.33||₹24,139.35|
|Ambuja Cements Ltd||₹85,065.04||₹433.9|
|Dalmia Bharat Ltd||₹39,101.02||₹2,123.55|
|ACC Ltd||₹34,431 Cr||₹2,011.25|
|JK Cement Ltd||₹25,465.30||₹667.35|
|Ramco Cements Ltd||₹20,503.09||₹888.3|
|RHI Magnesita India Ltd||₹14,887.72||₹711.8|
|Nuvoco Vistas Corporation Ltd||₹12,054.02||₹344.8|
Note: The data is from 31st August, 2023. However, for real-time updates on stock prices and market trends, visit smallcase stocks collection today!
Cement Industry in India
The cement industry is a cyclical industry and is heavily influenced by the construction sector. The demand for cement is directly related to the level of construction activity, making the industry vulnerable to economic downturns.
However, the industry has steadily grown due to the increasing demand for infrastructure development and urbanization. The cement industry is also fragmented, with many small and mid-sized companies operating alongside large multinational corporations.
Moreover, cement company shares expose investors to a key sector of the economy. They 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 cement companies 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. The company’s products are used in infrastructure and construction projects, including highways, airports, dams, and residential buildings.
- Low Risk: Stock is 1.74x as volatile as Nifty
- Largecap: With a market cap of ₹2,39,190 cr, the stock is ranked 22
Grasim Industries Ltd
Grasim Industries Ltd. is the Aditya Birla Group’s flagship company and a cement industry player. The company operates through its subsidiary UltraTech Cement Ltd. and has over 116 million tonnes per annum production capacity. Grasim Industries is also involved in various other industries, such as viscose staple fibre, viscose filament yarn, chemicals, and textiles.
- Low Risk: Stock is 1.67x as volatile as Nifty
- Largecap: With a market cap of ₹1,17,571 cr, stock is ranked 49
Shree Cement Ltd
Shree Cement Ltd. is one of the top cement companies in India and operates through its plants in Rajasthan, Uttarakhand, Bihar, and Haryana. The company has a production capacity of over 44 million tonnes annually and is known for its high-quality cement products. Shree Cement’s products are used in infrastructure projects, including highways, airports, and ports.
- Moderate Risk: Stock is 2.44x as volatile as Nifty
- Largecap: With a market cap of ₹85,876 cr, stock is ranked 69
Ambuja Cements Ltd
Ambuja Cements Ltd. is a part of the global cement company LafargeHolcim and one of India’s leading cement manufacturers. With a production capacity of over 29 million tonnes annually, it operates a network of more than 5,000 dealers. This cement business sells a diverse range of cement like portland pozzolana cement, ordinary portland, cements that resists water, cement that repels water, etc.
- High Risk: Stock is 4.12x as volatile as Nifty
- Largecap: With a market cap of ₹85,065 cr, stock is ranked 70
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.
- Moderate Risk: Stock is 2.57x as volatile as Nifty
- Midcap: With a market cap of ₹39,101 cr, stock is ranked 156
ACC Ltd. is one of the oldest cement manufacturers in India and is a part of the global cement company LafargeHolcim. 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 are used in various construction projects, including residential buildings, commercial complexes, and infrastructure projects.
- High Risk: Stock is 3.04x as volatile as Nifty
- Midcap: With a market cap of ₹37,665 cr, stock is ranked 159
JK Cement Ltd
JK Cement is a leading Indian cement manufacturer known for its high-quality cement products and a strong presence in both domestic and international markets. The company has a reputation for innovation and sustainable practices in the cement industry. This cement business is the second biggest wall putty manufacturer in India.
- Moderate Risk: Stock is 2.41x as volatile as Nifty
- Midcap: With a market cap of ₹25,465 cr, stock is ranked 223
Ramco Cements Ltd
Ramco Cements is a prominent cement company. The cement manufacturer is recognized for its commitment to quality and efficiency. With a significant market presence, it plays a vital role in the construction and development sectors, offering a range of high-quality cement products.
- Moderate Risk: Stock is 2.29x as volatile as Nifty
- Smallcap: With a market cap of ₹20,503 cr, stock is ranked 261
RHI Magnesita India Ltd
RHI Magnesita India is a subsidiary of the global refractory leader RHI Magnesita. It is 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 the industrial infrastructure of India.
- High Risk: Stock is 3.68x as volatile as Nifty
- Smallcap: With a market cap of ₹14,887 cr, stock is ranked 312
Nuvoco Vistas Corporation Ltd
Nuvoco Vistas Corporation Ltd., a subsidiary of Lafarge India Pvt Ltd., is a prominent cement manufacturer in India, committed to delivering construction solutions. With a diverse product portfolio and a focus on environmental sustainability, Nuvoco, under the Lafarge umbrella, plays a significant role in the country’s infrastructure development.
- Moderate Risk: Stock is 2.73x as volatile as Nifty
- Smallcap: With a market cap of ₹12,054 cr, stock is ranked 355
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 buy individual cement company stocks through a stockbroker or online trading platform. Another option is to invest in exchange-traded funds (ETFs) 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.
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Factors Affecting the Best Cement Share Prices
Some factors that can affect the performance of the best cement stocks 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.
- 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 will have a positive impact on the cement share price.
- Raw Material Prices: The prices of raw materials used in cement production, such as limestone and gypsum, can affect the cost of production and, ultimately, the profitability of cement shares.
- Energy Prices: The cost of energy, particularly coal and power, can impact the profitability of cement sector stocks, 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, which can ultimately impact the profitability of Indian cement stocks.
- Environmental Regulations: The stocks of cement Indian industry are subjected to various environmental regulations that can impact its operations and profitability. Hence, any change in environmental regulation will directly impact cement share price and its performance.
- Trade Policies and Tariffs: Changes in trade policies and tariffs can impact the cost of importing and exporting cement, ultimately affecting the profitability of cement shares & the overall cement business.
Factors to Consider While Investing in Cement Stocks
While investing in cement sector stocks, 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 the cement share price and its performance are primarily tied to economic cycles. 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 vying for market share. Hence, evaluate the company’s competitive position, market share, and growth potential 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, 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 are subject to environmental regulations and legal risks, such as fines and penalties for non-compliance. This means that any changes in these regulations will have a direct impact on the cement share price. Hence, evaluate the company’s compliance with regulations and its ability to manage legal risks.
To Wrap It Up…
Cement stocks offer a promising investment opportunity for long-term portfolio growth. Hence, portfolio 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.
Moreover, investing in cement shares via smallcase provides investors with several benefits, including diversification, low cost, and expert curation. So, what are you waiting for? Download the smallcase app today and start your investment journey!
According to the recent updates, you can invest in these three top cement stocks – UltraTech Cement Ltd, Grasim Industries Ltd, and Shree Cement Ltd. However, it’s important to do your own research or consult a financial advisor before investing.
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 cement stocks and choose the ones you want to invest in.
4. Place a buy order for the cement shares
5. Monitor your investments and sell the shares when you are ready to exit.
Since Indian cement stocks are cyclical in nature, the ideal time to invest in them is at the beginning of economic expansion.
Investors who are looking for a long-term investment in a cyclical industry with good growth prospects should consider investing in cement stocks.
Cement stocks can be suitable for long-term investors as they benefit from infrastructure growth. Additionally, due to its high-reliability factor, it is one of the top industries to invest in.
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