Best Cement Stocks in March 2025 Based on 5Y CAGR; India Cements, UltraTech Cement, Ambuja Cements & More

India is the world’s second-largest cement producer, contributing over 8% of global installed capacity. With significant growth potential in infrastructure and construction, the cement sector is poised to benefit substantially. In this article, check the best cement stocks in India for March 2025, based on the 5-year CAGR and other parameters like debt to equity ratio and net profit margin.

Best Cement Stocks in March 2025 – Based on 5yr CAGR

Note: The best cement stocks in India for March 2025 listed here are as of February 25, 2025. The stocks are picked from the Nifty 500 universe, with positive 1-year returns and are sorted based on the 5-yr CAGR.

Overview of the Best Cement Stocks in March 2025

1. India Cements Ltd

India Cements Ltd is amongst the leading cement manufacturing companies. The company’s consolidated net sales for Q3 FY25 stood at ₹940.81 crore, compared to ₹1,144.46 crore in the same period of the previous year. However, Profit After Tax (PAT) increased to ₹196.22 crores, up from ₹0.67 crores in Q3 FY24.

Key metrics:

• ROCE: -0.25%
• ROE: -3.98%

2. Grasim Industries Ltd

Grasim Industries Limited is the flagship company of the Aditya Birla Group. On a standalone basis, GIL’s core businesses have Viscose Staple Fibre (VSF), caustic soda, speciality chemicals, and rayon-grade wood pulp (RGWP), with manufacturing facilities at various locations. Additionally, the company is involved in other sectors such as fertilisers, textiles, and more.

In Q3 FY25, the company registered a revenue of ₹34,793 crore, reflecting a 9% YoY growth compared to ₹31,965 crore in Q3 FY24. The PAT declined to ₹899 crore, a 41% decrease from ₹1,514 crore in Q3 FY24.

Key metrics:

• ROCE: 7.19%
• ROE: 4.30%

3. J K Cement Ltd

J K Cement Ltd is into the manufacturing and selling of cement and cement-related products. The company has over 4 decades of experience in cement manufacturing. In Q3 FY25, the company reported a 14% quarter-on-quarter (QoQ) growth in revenue from operations, reaching ₹2,930 crore, compared to ₹2,560 crore in Q2 FY25. However, revenue remained almost flat on a year-on-year (YoY) basis, as it was ₹2,935 crore in Q3 FY24.

The company’s profit after tax (PAT) saw a 40% QoQ increase, rising to ₹190 crore in Q3 FY25, up from ₹136 crore in Q2 FY25. However, compared to the same period last year, PAT declined by 33% from ₹284 crore in Q3 FY24.

Key metrics:

• ROCE: 14.27%
• ROE: 15.88%

4. UltraTech Cement Ltd

UltraTech Cement is engaged in the manufacturing and sale of cement and cement-related products mainly across the globe. The company’s consolidated net sales for Q3 FY25 were ₹16,971 crore, compared to ₹16,487 crore in the same period of the previous year. Profit after tax decreased to ₹1,470 crores during Q3 FY25, compared to ₹1,777 crores in the previous year.

Key metrics:

• ROCE: 14.06%
• ROE: 12.22%

5. Shree Cement Ltd

Shree Cement is involved in the manufacturing and selling of cement and cement-related products. For the quarter ended December 31, 2024, the company reported a net revenue from operations of ₹4,235 crore, reflecting a 13% decline year-on-year (YoY) from ₹4,873 crore but a 14% increase quarter-on-quarter (QoQ) from ₹3,727 crore. The profit after tax stood at ₹229 crore, marking a 69% drop YoY from ₹734 crore. However, on a QoQ basis, the profit surged by 146% from ₹93 crore.

Key metrics:

• ROCE: 14.76%
• ROE: 12.15%

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

Note: The best cement stocks in India for March 2025 listed here are as of February 25, 2025. The stocks are picked from the Nifty 500 universe and are sorted based on the low debt-to-equity ratio.

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

Note: The best cement stocks in India for March 2025 listed here are as of February 25, 2025. The stocks are picked from the Nifty 500 universe and are sorted based on the net profit margin.

Cement Sector Growth in India

India ranks as the world’s second-largest cement producer, contributing over 8% to the global installed capacity. With significant growth potential in the infrastructure and construction sectors, the cement industry is poised to benefit substantially. Additionally, rising rural housing demand has been driving steady cement consumption.

In 2023, India’s cement market size stood at 3.96 billion tonnes and is projected to reach 5.99 billion tonnes by 2032, growing at a CAGR of 4.7% from 2024 to 2032. Cement consumption is expected to rise to 450.78 million tonnes by the end of FY27.

Who Can Invest in Cement Stocks?

Cement sector stocks can offer a viable investment opportunity for long-term investors seeking to benefit from India’s expanding infrastructure and real estate sectors. With consistent demand, relatively low volatility, and dividend potential, these stocks can be appealing to conservative investors. However, investors should be mindful of cyclical demand fluctuations influenced by macroeconomic factors like interest rates and government policies.

Conclusion

The cement sector in India can provide growth prospects driven by infrastructure development and urbanisation. However, investors must carefully analyse each company’s financials, market positioning, and risks before making an investment decision.

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.