Best Cement Stocks to Invest in India in 2024 (2024)

One of the eight primary industries in the nation is Cement Industry. Due to the ongoing growth in many regions of the country, it has historically been a highly significant industry for the government and has made significant strides since its independence.

Every infrastructure project uses Cement, whether in a rural or urban setting, including residential, commercial, or industrial developments, roads, trains, etc. Further, due to several government efforts, the country's Cement industry has experienced tremendous volume expansion.

In this blog, we have explored the Indian Cement Stock industry and uncovered some of the top Cement companies in India that are expanding quickly. So, read on to know more about the same!

The Indian Cement Stocks Industry: A Synopsis

India's need for Cement and other associated materials is expanding as it lays the groundwork for the future due to its population and extensive infrastructure development. India produces 7% of the world's Cement capacity, making it the second-largest Cement manufacturer in the world.

In FY21, India's total capacity for producing Cement increased by 7.8% to about 262 million tonnes. Given the contraction of the industrial and construction sectors during the COVID-19 epidemic and subsequent lockdowns, this increase is noteworthy.

IBEF statistics further state that this significant rise is expected to continue. Cement consumption is predicted to reach 550–600 MT by 2025, driven mainly by the enormous need for residential, commercial, and industrial development.

The demand for housing has also been helped by initiatives taken by the Indian government to improve housing, including MGNREGA, PM Garib Kalyan Rozgar Abhiyan, and state-level initiatives like Matir Srisht and public work projects.

These programs will work together to build a world-class, seamless multimodal transport network in India, which will also be advantageous for the Cement sector.

These figures show that the Cement industry will gain significantly from India's fast-rising infrastructure needs. Demand will be considered as the nation is anticipated to create more than 100 smart city projects and related infrastructure projects over the next few years.

Best Cement Stocks in India in 2024

Let us review the top Cement Stocks in India now that we understand this industry better.

Factors to Consider Before Investing in Cement Stocks in India

The sustainability of the Cement Stocks and the Cement industry at large depends on several variables. Below is a list of these elements-

• Capital Costs of The Economic System

Due to the high capital requirements of the Cement business, a slightly elevated debt-to-equity ratio is not unusual. Therefore, an increase in borrowing rates has a more detrimental effect on Cement firms' profitability. Additionally, decreasing consumer spending power on real estate is a result of rising interest rates.

• Spending Expenditures by The Government on Infrastructure

Government-built buildings, roads, bridges, dams, and ports provide a consistent source of demand for the Cement sector.

• Transportation Costs

To cut costs, businesses must strategically place their mines in factories and metropolitan centres such as coal and limestone. Both the cost of manufacturing and the demand for housing are affected by the rising price of gasoline for cars.

• Growth of The Home Financing Industry

More individuals will be able to buy homes, and more real estate ventures will be able to get off the ground.

Best Cement Stocks in India 2024 - An Overview

1) UltraTech Cement Ltd.

In India, UltraTech Cement Limited is primarily concerned with the manufacture and distribution of Cement and goods that are directly related to Cement.

The most prosperous Cement company in India, the third-most successful Cement company worldwide, apart from China, and the most prosperous Cement manufacturer worldwide are all Ultratech Cement.

In addition, Ultratech Cement is the biggest Cement producer in India. Additionally, this company is considered the best Cement share in India.

2) Grasim Industries Ltd.

This manufacturing business, with its headquarters in Mumbai, is known as Grasim Industries Limited.

Since its founding in 1947 as a textile manufacturer, Grasim has expanded into a variety of industries, including Cement and financial services through its subsidiaries UltraTech Cement and Aditya Birla Capital, as well as textile raw materials like viscose staple fibre (VSF) and viscose filament yarn, chemicals, and insulators.

The business belongs to the Aditya Birla Group. Further, this company is considered another top Cement share in India.

3) Ambuja Cements Ltd.

Ambuja Cements Limited is the most successful Cement manufacturer in India, having a presence in 80 different nations and focusing on creating Cement, aggregate, and concrete. It is often called the best cement in India.

It is a division of the global corporation LafargeHolcim Limited, with its headquarters in Switzerland and operations spread over more than 70 nations.

The business manufactures and sells a range of Cement, including ordinary Portland cement, Portland pozzolana Cement, Cement that repels water, Cement that resists water, and more. In addition, it produces various other products, such as concrete blocks, aggregates, and concrete.

4) Shree Cement Ltd.

One of the most affordable Cement producers in the nation, Shree Cement Limited produces and sells Cement and Cement-related goods.

The production of Cement and the sale of goods connected to Cement are the two main businesses of Shree Cement. It is the third largest Cement manufacturer in India, with an installed capacity of 43.4 MTPA.

5) ACC Ltd.

ACC Limited has been in business since 1936 and is a part of the LafargeHolcim Group. Cement and ready-mix concrete manufacturing and sales are the company's main priorities.

The corporation runs manufacturing facilities throughout India and targets the local Indian market for most of its output.

6) Dalmia Bharat Ltd.

Shri Jaidayal Dalmia founded Dalmia Bharat Limited (DBL), a renowned Cement company with a total capacity of 35.9 MTPA, in 1939. The company now has 14 production facilities that serve clients in 22 states through a network of more than 32,000 dealers and sub-dealers.

Each of its three businesses—Cement, sugar, and refractories—has a sizable market presence. Dalmia Bharat Limited (DBL) was established on July 12, 2013, under the Companies Act of 1956, as Odisha Cement Limited.

7) JK Cement Ltd.

One of the biggest Cement producers in Northern India is J.K. Cement Limited (JK Cement). As one of the nation's top producers, J.K. Cement has an installed grey Cement capacity of 14.7 million tonnes per annum (MnTPA).

With a total of 600,000 tonnes per year, it is India's second-largest white cement producer. J.K. Cement has an installed capacity of 700000 tonnes per year, making it the second biggest wall putty manufacturer in the nation. Lala Kamlapat Singhania formed the J.K. Organization, an affiliate of which is J.K. Cement, in 1994.

8) Ramco Cements Ltd.

Ramco Industries Limited, a Ramco Group division with Chennai headquarters, manufactures Calcium Silicate Boards and Fiber Cement (FC) sheets (CSBs). The business also produces computer software, selling extra energy produced by its windmills and spinning cotton yarn.

9) Nuvoco Vistas Corporation Ltd.

Infra Cement India Private Limited, the original name of Nuvoco Vistas Corp. Limited, was founded as a Private Limited Company in Mumbai on February 8, 1999, by the Companies Act of 1956.

On May 25, 1999, the RoC approved the name change, at which point the Company's name was changed to Lafarge India Private Limited, and a new Certificate of Incorporation was issued.

With effect from 02 November 1999, the Company was judged to be a public limited company. However, the Company's status afterwards changed from being presumed to be a public limited company to a private limited company by the Resolution dated 16 April 2003.

10) RHI Magnesita India Ltd.

One of the leading refractory manufacturers in India is RHI Magnesita India Ltd. (previously Orient Refractories Ltd.). The company principally produces refractories for the steel sector.

Products from ORL are sold both in India and abroad. It offers a large selection of unique refractories. Three cutting-edge manufacturing facilities are used to serve consumers; they are located in Rajasthan, Andhra Pradesh, and Odisha. For the production of elemental spray mass, it has a franchise in Salem, Tamil Nadu.

Isostatically Pressed Continuous Casting Refractories, Slide Gate Plates, Nozzles, and Well Blocks are among the company's products. Slag-arresting darts and Tundish Nozzles for Bottom Purging Refractories and Top Purging Lances Basic Spray Mass for Castables and Tundish Working Lining.

Conclusion

As a result, Cement stocks are consistently a top consideration among investors. In addition, the Cement business has historically been one of the most reliable in terms of growth.

Although recent events have caused minor swings in Cement stock prices, the sector is positioned for long-term development and will be a terrific addition to any portfolio.

Lastly, it is advised to speak with a broker and conduct extensive research before investing in a Cement stock. Since there are so many well-established businesses in the market and there is fierce rivalry, it is challenging to endorse any one company in particular.

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

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Research Analyst – Himanshu Sinha