The cement industry is one of the eight main sectors in the country. It has traditionally been a very significant business for the government and has achieved great progress after independence as a result of the continued expansion in various parts of the nation.
Whether in an urban or rural location, every infrastructure project, such as roads, railroads, and residential, commercial, or industrial constructions, utilizes cement.
Also, the country’s cement sector has seen a huge volume increase as a result of several government initiatives.
In this article, we’ve examined the Indian cement stock market and identified some of the country’s top cement producers that are seeing rapid growth. Continue reading to learn more about it.
The Indian Cement Stocks Industry: A Synopsis
India’s need for cement and other related materials is rising as it builds its infrastructure and lays the foundation for the future.
This is because of its large population and rapid infrastructural growth. India is the second-largest cement producer in the world, producing 7% of the global cement capacity.
India’s total cement production capacity climbed to roughly 262 million tonnes in FY21, an increase of 7.8%.
This growth is significant in light of the shrinkage of the industrial and construction sectors during the COVID-19 pandemic and ensuing lockdowns.
According to IBEF figures, this large increase is predicted to continue. By 2025, it is anticipated that cement consumption would reach 550–600 MT, mostly due to the tremendous demand for residential, commercial, and industrial growth. Housing demand has increased.
been aided by the government of India’s home improvement efforts, such as MGNREGA, PM Garib Kalyan Rozgar Abhiyan, and state-level programs like Matir Srisht and public works projects.
Together, these initiatives will create a world-class, seamless multimodal transport network in India, which will be beneficial for the cement industry as well.
These numbers demonstrate that the cement sector will benefit greatly from India’s rapidly expanding infrastructure demands.
As the country is expected to develop more than 100 smart city projects and related infrastructure projects over the following several years, demand will be taken into account.
Best Cement Stocks in India in 2023
|1.||UltraTech Cement Ltd.|
|2.||Grasim Industries Ltd.|
|3.||Ambuja Cements Ltd.|
|4.||Shree Cement Ltd.|
|6.||Dalmia Bharat Ltd.|
|7.||J K Cement Ltd.|
|8.||Ramco Cements Ltd.|
|9.||Nuvoco Vistas Corporation Ltd.|
|10.||RHI Magnesita India Ltd.|
Things to Take into Account Before Buying Indian Cement Stocks
Many factors affect how long the Cement Stocks and the Cement business will be viable. The elements are listed as follows:
- Capital Costs of The Economic System
A significantly increased debt-to-equity ratio is common in the cement industry due to the high capital requirements of the industry.
Hence, the profitability of cement companies is more negatively impacted by a rise in borrowing costs. In addition, higher loan rates have a negative impact on consumers’ ability to purchase real estate.
- Spending Expenditures by The Government on Infrastructure
Government-built infrastructure, including ports, roads, bridges, dams, and buildings, provides a steady stream of demand for cement.
- Transportation Costs
Businesses that mine commodities like coal and limestone must strategically locate these mines near manufacturing facilities and urban areas to save expenses.
The growing cost of fuel for automobiles has an impact on both the cost of production and the demand for homes.
- Growth of The Home Financing Industry
More people will be able to purchase homes, and more real estate projects will be able to start.
Best Cement Stocks in India 2023 – An Overview
1) UltraTech Cement Ltd.
The main business of UltraTech Cement Ltd in India is the production and sale of cement and products that are directly connected to cement.
Ultratech Cement is the most successful cement maker worldwide, the third-most successful cement firm outside of China, and the most successful cement company in India.
Moreover, Ultratech Cement is India’s largest cement manufacturer. Furthermore, this business is regarded as having the best cement stock in India.
2) Grasim Industries Ltd.
Grasim Industries Ltd is the name of this manufacturing company, which has its headquarters in Mumbai.
Since its establishment in 1947 as a textile manufacturer, Grasim has diversified into a number of markets, including cement, financial services, and textile raw materials like viscose staple fiber (VSF) and viscose filament yarn, chemicals, and insulators, through its subsidiaries UltraTech Cement and Aditya Birla Capital.
The Aditya Birla Group owns the company. Also, this business is regarded as another top cement stock in India.
3) Ambuja Cements Ltd.
Ambuja Cements Ltd, which operates in 80 different countries and specializes in producing cement, aggregate, and concrete, is the most prosperous cement maker in India. It is frequently referred to be India’s top cement.
It is a part of the multinational company LafargeHolcim Ltd, which has activities in more than 70 countries and its headquarters in Switzerland.
The company produces and sells a variety of cement, such as regular Portland Cement, Portland Pozzolana Cement, Water-Repellent Cement, Water-Resistant Cement, and more.
It also manufactures a variety of other goods, including concrete, aggregates, and concrete blocks.
4) Shree Cement Ltd.
Shree Cement Ltd makes and distributes cement and products linked to cement and is one of the nation’s most reasonably priced cement makers.
The two primary operations of Shree Cement are the manufacturing of cement and the selling of products related to cement. With a 43.4 MTPA installed capacity, it is India’s third-largest cement producer.
5) ACC Ltd.
Since its founding in 1936, ACC Limited has been a member of the LafargeHolcim Group. The company’s top goals are the production and selling of cement and ready-mix concrete.
The company has factories all throughout India and sells the majority of its products in the domestic Indian market.
6) Dalmia Bharat Ltd.
Dalmia Bharat Limited (DBL), a renowned cement business with a 35.9 MTPA capacity, was established in 1939 by Shri Jaidayal Dalmia.
With a network of more than 32,000 dealers and sub-dealers, the business now has 14 manufacturing facilities that service customers in 22 states.
Cement, sugar, and refractories are three of its three industries, and each has a considerable market share. On July 12, 2013, Odisha Cement Limited, a new company governed by the Companies Act of 1956, became Dalmia Bharat Limited (DBL).
7) JK Cement Ltd.
One of the main Cement producers in Northern India is J.K. Cement Ltd (JK Cement) (JK Cement). Being one of the nation’s major manufacturers, J.K. Grey cement’s installed annual capacity is 14.7 million tonnes (MnTPA) (MnTPA).
It is India’s second-largest producer of white cement, producing a total of 600,000 tonnes annually. With an installed capacity of 700000 tonnes annually, J.K.
Cement ranks as the second-largest producer of wall putty in the country. In 1994, Lala Kamlapat Singhania founded the J.K. Organization, of which J.K. Cement is a subsidiary.
8) Ramco Cements Ltd.
Ramco Industries Ltd, a division of the Ramco Group with its headquarters in Chennai, produces Fiber Cement (FC) sheets and Calcium Silicate Boards (CSBs).
In addition to spinning cotton yarn and producing computer software, this company also sells additional energy generated by its windmills.
9) Nuvoco Vistas Corporation Ltd.
The initial name of Nuvoco Vistas Corp. Limited was Infra Cement India Private Limited, which was established as a Private Limited Company on February 8, 1999, in Bombay under the Companies Act of 1956.
Lafarge India Private Limited became the name of the company on May 25, 1999, after the RoC’s approval of the name change. A new Certificate of Incorporation was also issued at that time.
The Company was determined to be a public limited company as of 02 November 1999. The Resolution of April 16, 2003, however, transformed the Company’s presumptive status from a public limited company to a private limited corporation.
10) RHI Magnesita India Ltd.
RHI Magnesita India Ltd. is one of the top producers of refractory materials in India (previously Orient Refractories Ltd.). Refractories are primarily produced by the firm for the steel industry.
Both in India and internationally, ORL products are sold. It provides a wide range of unusual refractories.
Customers are served by three state-of-the-art production facilities that are situated in Rajasthan, Andhra Pradesh, and Odisha. It has a franchise in Salem, Tamil Nadu, for the manufacturing of elemental spray mass.
The company’s products include well blocks, slide gate plates, nozzles, and isostatically pressed continuous casting refractories.
Basic Spray Mass for Castables and Tundish Working Lining, Slag-arresting Darts, and Tundish Nozzles for Bottom Purging Refractories and Top Purging Lances
As a result, investors frequently give cement stocks significant priority. In terms of growth, the cement industry has moreover traditionally been one of the most dependable.
Although recent events have produced small fluctuations in the price of cement stocks, the industry is poised for long-term growth and will be a fantastic asset to any portfolio.
Furthermore, it is suggested that you consult a broker and do sufficient research before buying Cement stock. It is difficult to recommend a specific firm because there are so many well-established enterprises on the market and there is severe competition.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
You May Also Be Interested to Know the-