India’s cement industry thrives due to strong demand from government-backed housing schemes, and initiatives like smart cities and highways. This focus on infrastructure development positions the industry for sustained growth in the years ahead.
In the Union Budget 2024-25, significant allocations were made for infrastructure, with ₹2.5 lakh crore earmarked for highway expansion and ₹1 lakh crore dedicated to rural housing. These investments are expected to fuel the demand for cement across the country.
Let’s explore the top cement stocks in India for December 2024, focusing on companies that have shown the best 5-year CAGR performance.
| Company Name | Market Cap (₹ Cr) | 5Y CAGR (%) | 1Y Return (%) | PE Ratio |
| JK Lakshmi Cement Ltd | 9,751.32 | 24.05 | 0.5 | 20.67 |
| UltraTech Cement Ltd | 3,39,124.48 | 23.08 | 25.01 | 48.41 |
| Ambuja Cements Ltd | 1,39,092.58 | 22.41 | 19.39 | 38.89 |
| Star Cement Ltd | 8,392.40 | 17.96 | 10.94 | 28.44 |
| Dalmia Bharat Ltd | 36,325.59 | 17.69 | -16.33 | 43.98 |
| ACC Ltd | 42,075.61 | 8.23 | 13.48 | 18.01 |
| Shree Cement Ltd | 98,875.32 | 6.04 | -2.01 | 41.27 |
| Ramco Cements Limited | 24,589.77 | 5.7 | 0.75 | 68.31 |
| Hemadri Cements Ltd | 53.65 | – | -6.48 | -4.91 |
Note: The best cement stocks list here is as of December 05, 2024. The stocks are sorted based on the 5Y CAGR.
JK Lakshmi Cement Ltd is a leading cement manufacturer in India. The company focuses on innovation, sustainability, and expanding its footprint in both domestic and international markets.
For the quarter ended September 2024, the company reported a net loss of ₹9.24 crore, compared to a profit of ₹95.87 crore in the corresponding quarter a year ago. The company’s consolidated total income for Q2 FY25 stood at ₹1,242.67 crore, against ₹1,588.51 crore in the same quarter last year.
Key metrics:
UltraTech Cement Ltd is India’s largest manufacturer of grey cement, ready mix concrete and white cement.
For the quarter ended September 2024, the company reported a net profit of ₹825 crore, against ₹1,695 crore in the previous quarter. The company’s total revenue for Q2 FY25 stood at ₹15,855 crore, down from ₹18,235 crore in the previous quarter.
Key metrics:
Ambuja Cements Ltd is one of India’s leading cement manufacturers, known for its innovative and sustainable building materials.
For the quarter ended September 2024, the company reported a net profit of ₹456 crore, compared to ₹793 crore in the same period last year. The company’s revenue increased to ₹7,516 crore, marking the highest quarterly revenue in the last five years.
Key metrics:
Star Cement Ltd is a prominent cement manufacturer in India, known for its high-quality products and strong market presence in the northeastern region.
For the quarter ended September 2024, the company reported a revenue of ₹643.18 crore, marking an 8.82% increase compared to the corresponding period last year. Net profit for Q2 FY25 stood at ₹5.74 crore, reflecting a significant 85.89% decrease on-year.
Key metrics:
Dalmia Bharat Ltd is a leading Indian cement manufacturer, known for its strong presence in the domestic market and commitment to sustainability. With a focus on innovation, the company produces a range of cement products, catering to both residential and industrial sectors.
For the quarter ended September 2024, the company reported a net profit of ₹49 crore, reflecting a 60.2% decline compared to the corresponding period last year. Revenue from operations stood at ₹3,087 crore, marking a 2.1% decrease from the previous year’s corresponding quarter.
Key metrics:
Government-backed initiatives such as smart cities, highways, and urbanisation continue to drive strong demand for cement.
Cement companies are expanding production capacities to meet the increasing demand in both urban and rural regions.
The industry is incorporating modern technologies to enhance energy efficiency and minimise emissions.
Growing environmental awareness is prompting companies to adopt sustainable practices, shaping the future of the sector.
Assess the demand for cement in the context of infrastructure projects, urbanisation, and construction activities.
Consider government initiatives, like housing schemes and infrastructure development, which directly impact the cement industry.
Review a company’s financial performance, profitability, debt levels, and market position in the cement sector.
Evaluate how global economic trends and domestic growth rates influence the cement industry’s performance.
India is the world’s second-largest cement producer, with an installed capacity of over 540 million tons annually. The industry is expected to grow at a robust 6-8% CAGR between 2023 and 2028, fueled by rising demand from housing and infrastructure sectors.
The cement industry is increasingly focusing on sustainability, with efforts to produce green cement and adopt alternative fuels. Companies have pledged to reduce carbon intensity by 45% by 2050, in line with global climate goals.
India exported 6.6 million tons of cement in fiscal year 2023, with major markets including Bangladesh, Nepal, and Sri Lanka. Its cost-competitive production and geographical proximity to these countries make it a strategic hub for cement exports.
India’s cement industry is embracing advanced technologies to enhance efficiency and reduce costs. Automation, artificial intelligence (AI), and the Internet of Things (IoT) are being deployed for predictive maintenance, optimising energy use, and improving production quality.
Before investing in cement stocks, evaluate each company’s financial health, growth prospects, and sensitivity to market fluctuations. Make investment choices that align with your financial objectives, and consider consulting a financial advisor to navigate this evolving sector.
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.
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