Best Cement Stocks in April 2025 Based on 5Y CAGR: Grasim Industries, J K Cement and More

The Indian cement sector plays a crucial role in the country’s infrastructure and real estate industries. In April 2025, the sector continues to witness expansion plans and capacity additions, even as demand remains subdued in the first half of FY25.

Leading cement companies are expecting a 6-7% volume growth this fiscal year, despite an initial pricing downturn. Over the past 5 years, certain cement stocks have demonstrated strong performance based on compound annual growth rate (CAGR), reflecting their resilience and market position.

Here’s a look at some of the key cement sector stocks based on their 5-year CAGR.

Best Cement Stocks in April 2025 – Based on 5 Yr CAGR

Note: The best cement stocks list mentioned above is as of April 3, 2025, and is sorted based on 5-year CAGR.

Overview of Top 5 Cement Stocks in April 2025

1. Grasim Industries Ltd

Grasim Industries, a flagship company of the Aditya Birla Group, operates in the cement sector through UltraTech Cement, India’s largest cement manufacturer. With a robust production capacity and a strong market presence, it plays a key role in infrastructure and construction growth.

Key metrics: 

• ROCE: 7.19%
• ROE: 4.3%

2. J K Cement Ltd

In January 2025, JK Cement Ltd. announced plans to expand its grey cement division, JK Super Cement, into eastern Uttar Pradesh. Additionally, the company secured a 250 million-tonne limestone reserve in Gujarat through a long-term agreement with GMDC, ensuring a steady supply of high-quality limestone for the next 40 years.

In a recent development, JK Cement has been declared the preferred bidder for the Gaitara Limestone Block in Chhattisgarh.

Key metrics: 

• ROCE: 14.27%
• ROE: 15.88%

3. Dalmia Bharat Ltd

In a recent development, Dalmia Bharat Ltd has expanded its production capacity to 49.5 MTPA in FY25, including a 1.6 MTPA increase at its Rohtas Cement Works plant in Bihar. With an investment of ₹96 crore, this expansion strengthens DBL’s presence in the eastern market

Dalmia Bharat has a strong footprint in the East with manufacturing units in Bihar, Jharkhand, West Bengal, and Odisha.

Key metrics: 

• ROCE: 6.26%
• ROE: 5.12%

4. UltraTech Cement Ltd

UltraTech Cement, the flagship company of the Aditya Birla Group, has commissioned multiple brownfield expansions across India, enhancing its production capacity.

The company has brought 3.35 MTPA clinker capacity online, along with one of two cement mills (2.7 MTPA) at its Maihar unit in Madhya Pradesh. The second grinding mill is set to become operational in Q1 FY26.

Key metrics: 

• ROCE: 14.06%
• ROE: 12.22%

5. Ambuja Cements Ltd

Ambuja Cements, a part of the Adani Group, is expanding its production capacity to strengthen its market position. The company continues to focus on sustainability and efficiency in cement manufacturing.

In Q3 FY25, Ambuja Cements posted a remarkable 140% year-on-year rise in net profit to ₹2,620 crore, supported by increased sales volume, cost optimisations, and robust operations. Revenue also saw a 14.8% YoY growth, reaching ₹9,329 crore.

Key metrics:

• ROCE: 11.63%
• ROE: 7.98%

Best Cement Stocks in April 2025 – Based on Debt to Equity Ratio

The Debt-to-Equity Ratio is a key financial metric that indicates a company’s financial leverage. A lower ratio reflects a stronger balance sheet with minimal reliance on debt, while a higher ratio suggests greater borrowing to fund expansion and operations.

Note: The best cement stocks list mentioned above is as of April 3, 2025, and is sorted based on the Debt-to-Equity Ratio, from lowest to highest.

Best Cement Stocks in April 2025 – Based on Net Profit Margin

The Net Profit Margin measures a company’s profitability by indicating how much profit is generated from total revenue. Below is a list of the best cement stocks as of April 3, 2025, sorted from highest to lowest Net Profit Margin.

Note: The best cement companies list mentioned above is as of 03, April 2025 and is sorted based on Net Profit Margin.

Conclusion

The Indian cement sector remains a key pillar of the country’s infrastructure and construction growth, with leading companies continuing to expand their capacities and strengthen their market presence.

Investors tracking cement stocks can analyse key financial metrics like 5-year CAGR, Debt-to-Equity Ratio, and Net Profit Margin to assess a company’s long-term performance and risk profile. However, investment decisions should be based on thorough research and alignment with individual financial goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.