Cement stocks gain momentum today; do you hold any in your portfolio?

The cement industry plays a vital role in India’s infrastructure development and is a key driver of the country’s economic growth. Cement serves as the primary construction material for a wide range of projects, including residential and commercial buildings, as well as critical infrastructure like roads, bridges, and dams. Over the years, India’s cement sector has experienced impressive growth, establishing itself as one of the world’s largest cement producers.

India currently ranks as the second-largest cement producer globally, boasting more than 8% of the world’s total installed capacity. According to Crisil Ratings, it is projected that the Indian cement industry will witness a substantial expansion, adding approximately 80 million tons (MT) of capacity by FY24. This growth represents the highest capacity increase in the last decade and is driven by increased investments in housing and infrastructure development.

In today’s market, cement stocks are generating significant interest and activity. In this article, we will delve into the top-performing cement stocks:

India is home to a total of 210 major cement plants, with a significant concentration of 77 plants located in Andhra Pradesh, Rajasthan, and Tamil Nadu. Geographically, South India accounts for around 32% of the country’s cement production capacity, followed by 20% in North India, 13% in Central India, 15% in West India, and the remaining 20% in East India, as reported by the IBEF.

The broader indices, such as Nifty and Sensex, are also showing significant strength starting from the beginning of this current month, with both indices trading in the green today.

Investors must keep these stocks on their radar as they may outperform the market in the upcoming days.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.