Best Cement Stocks in India
Cement is one of the essential materials required for the construction industry. Cement demand has been steadily increasing in India over the years. The cement industry in India is expected to grow at a CAGR of 8.96% during the period 2021-2026. The Indian government's focus on infrastructure development, affordable housing, and smart cities has led to an increased demand for cement, which has resulted in the growth of cement companies in India. In this article, we will discuss the best cement stocks in India and what makes them stand out from the rest in the industry.
Cement Industry in India
The Indian cement industry is dominated by a few large players. With the top 10 cement companies accounting for over 70% of the total cement production in India. Cement stocks in India are categorised into two types, large-cap and mid-cap stocks. The large-cap stocks are companies with a market capitalisation of over INR 10,000 crores, while mid-cap stocks have a market capitalisation between INR 2,000 crores to INR 10,000 crores.
Top Cement Stocks in India
While there are scores of cements company stocks on the market, here are some cement stocks that figure in our list of top 10 cement stocks in India:
UltraTech Cement
UltraTech Cement is the largest cement company in India and the world's fourth-largest cement producer. The company has a consolidated capacity of 116.8 million tonnes per annum (MTPA) and operates in India, UAE, Bahrain, Bangladesh, and Sri Lanka. UltraTech Cement has a diversified product portfolio, including Ordinary Portland Cement, Portland Pozzolana Cement, white cement, ready-mix concrete, and building products. The company has a strong distribution network, with over 100 plants, 500+ concrete plants, and a vast network of dealers and retailers. UltraTech Cement is known for its focus on sustainability and has been recognised as one of the world's most ethical companies by Ethisphere for three consecutive years.
ACC
ACC Limited is one of the oldest cement companies in India and was established in 1936. The company has a total capacity of 33.41 MTPA and operates 17 cement plants in India. ACC Limited's product portfolio includes Portland cement, Portland Pozzolana Cement, and Ready Mixed Concrete. The company has a strong presence in the Indian market and has been recognized as the Most Admired Cement Company in India by Fortune India for six consecutive years.
Ambuja Cements
Ambuja Cements Limited is a subsidiary of Holcim, one of the world's largest cement producers. The company has a total capacity of 29.65 MTPA and operates five cement plants in India. Ambuja Cements Limited's product portfolio includes Portland cement, Portland Pozzolana Cement, and Ready Mixed Concrete. The company has a strong focus on sustainability and has been recognised as one of the world's most sustainable companies by Corporate Knights for four consecutive years.
Shree Cement
Shree Cement Limited is one of the leading cement manufacturers in India, with a total capacity of 43.4 MTPA. The company operates 10 cement plants in India and has a diversified product portfolio, including Ordinary Portland Cement, Portland Blast Furnace Slag Cement, and Portland Pozzolana Cement. Shree Cement Limited has been recognized as one of the most efficient cement companies in India and has won several awards for its energy conservation and efficiency initiatives.
Dalmia Bharat
Dalmia Bharat Limited is one of the largest cement companies in India, with a total capacity of 30.75 MTPA. The company operates 13 cement plants in India and has a diversified product portfolio, including Ordinary Portland Cement, Portland Pozzol
Birla Corporation Limited (BCL)
Birla Corporation Limited is a leading cement manufacturer in India. The company was founded in 1919 and is headquartered in Kolkata, West Bengal. BCL has a strong presence in the northern and eastern regions of India, with cement plants in Uttar Pradesh, Madhya Pradesh, Rajasthan, and West Bengal. The company's popular cement brands are Birla Samrat, Birla Shakti, Birla Uttam, and Birla Khajuraho. BCL is also involved in the production of jute goods, auto trims, and steel casting.
JK Lakshmi Cement
JK Lakshmi Cement is a well-known cement company in India, founded in 1982. The company has a total production capacity of 13.3 million tonnes per annum and operates cement plants in Rajasthan, Gujarat, Chhattisgarh, and Haryana. JK Lakshmi Cement has a strong distribution network in North India, with over 4,000 dealers and retailers. The company's flagship brand is JK Lakshmi Cement.
Shree Cement Limited
Shree Cement Limited is a leading cement manufacturer in India, with a total production capacity of 43.4 million tonnes per annum. The company was founded in 1979 and is headquartered in Kolkata, West Bengal. Shree Cement Limited operates cement plants in Rajasthan, Uttarakhand, Bihar, Haryana, Chhattisgarh, and Uttar Pradesh. The company's popular cement brands are Shree Ultra, Bangur, and Rockstrong.
Cement Stocks in India: A Promising Future Ahead
The cement stocks India has been witnessing steady growth over the years, driven by increasing demand from the housing and infrastructure sectors. With the government's focus on boosting the infrastructure sector through various initiatives such as the Smart Cities Mission, Housing for All, and the Atmanirbhar Bharat Abhiyan, the future of cement stocks in India looks promising.
However, the future of any cement stock also depends on several other factors, such as the cost of raw materials, cost of capital, cost of transportation, capacity utilisation levels of companies, and the expansion of the housing finance sector. Companies need to optimise the locations of their mines, manufacturing plants, and sources of demand in order to minimise costs. Moreover, any increase in interest rates or fuel prices can have a negative impact on the profitability of cement companies.
Despite these challenges, several cement companies in India have been performing well, with some of them even featuring in the top 10 cement stocks in India. These companies have been consistently improving their operations, increasing their production capacities, and expanding their market share. Additionally, the growing demand from the infrastructure and housing sectors is expected to further boost the growth of cement stocks in India.
The future of cement stocks in India looks bright, with the government's focus on boosting the infrastructure and housing sectors. However, companies need to remain vigilant and adapt to the changing market dynamics in order to stay ahead in the game.
Conclusion
The cement stocks India is expected to witness significant growth in the coming years, driven by increasing infrastructure spending and the growth of the real estate sector. Cement companies in India have been investing heavily in capacity expansion and technological advancements to cater to the rising demand. The top 10 cement stocks in India mentioned in this article have been selected based on their market capitalisation, production capacity, and market share. These companies have a strong track record of growth, profitability, and market leadership.
However, investors are advised to do their own research and analysis before investing in any stock.
Disclaimer
The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.