+
Cement stocks surge as producers raise prices for September
Cement

Cement stocks surge as producers raise prices for September

Shares of cement companies witnessed a rally on Monday following price hikes for September ranging from 3% to 10% in east, west, and central India. Companies such as UltraTech Cement, ACC, Ambuja Cements, Shree Cements, Dalmia Bharat, Gujarat Ambuja Exports, Birla Corp, Ramco Cements, Nuvoco Vistas, ACC, and Ambuja Cements saw gains of 2% to 9% on the NSE.

While the September quarter is typically weak for cement producers due to reduced construction activity, strong demand in August, attributed to below-average monsoon rains, allowed companies to implement price increases this month. Cement prices have risen by ₹10-35 per 50kg bag, with the steepest hikes observed in eastern India, according to Jefferies. There's also potential for further price hikes in this region by mid-month, the brokerage noted.

Despite a 2% month-on-month decrease in the average cement prices in India to ₹358 per bag in August, prices remained relatively stable compared to the previous year, particularly in central and south India.

The market's response to these price hikes and the sustainability of these increases will be key factors impacting cement shares. The surge in cement company stocks is further supported by higher-than-usual trading volumes, with many reaching multi-month highs.

While robust demand is expected in the cement sector this year due to infrastructure and housing investments, the addition of incremental capacities by several cement producers may keep pricing competitive, experts caution. Lower fuel costs have also contributed to improved profitability, although the pricing trend will remain critical in the September quarter.

In addition to the positive momentum in the cement industry, Shree Cements received a boost after Nomura Financial upgraded its rating on the company's shares from 'reduce' to 'buy,' setting a target price of ₹28,700."

Shares of cement companies witnessed a rally on Monday following price hikes for September ranging from 3% to 10% in east, west, and central India. Companies such as UltraTech Cement, ACC, Ambuja Cements, Shree Cements, Dalmia Bharat, Gujarat Ambuja Exports, Birla Corp, Ramco Cements, Nuvoco Vistas, ACC, and Ambuja Cements saw gains of 2% to 9% on the NSE.While the September quarter is typically weak for cement producers due to reduced construction activity, strong demand in August, attributed to below-average monsoon rains, allowed companies to implement price increases this month. Cement prices have risen by ₹10-35 per 50kg bag, with the steepest hikes observed in eastern India, according to Jefferies. There's also potential for further price hikes in this region by mid-month, the brokerage noted.Despite a 2% month-on-month decrease in the average cement prices in India to ₹358 per bag in August, prices remained relatively stable compared to the previous year, particularly in central and south India.The market's response to these price hikes and the sustainability of these increases will be key factors impacting cement shares. The surge in cement company stocks is further supported by higher-than-usual trading volumes, with many reaching multi-month highs.While robust demand is expected in the cement sector this year due to infrastructure and housing investments, the addition of incremental capacities by several cement producers may keep pricing competitive, experts caution. Lower fuel costs have also contributed to improved profitability, although the pricing trend will remain critical in the September quarter.In addition to the positive momentum in the cement industry, Shree Cements received a boost after Nomura Financial upgraded its rating on the company's shares from 'reduce' to 'buy,' setting a target price of ₹28,700.

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code