The stock markets are volatile but cement stocks are standing tall today. Shares of major cement companies have clocked smart gains with UltraTech Cement leading the pack, followed by Ambuja Cement and Dalmia Bharat. A bullish call from UBS was one of the key catalysts fuelling the rally.
As per the latest update, UltraTech Cement is up over 3.5%, Ambuja Cement and Dalmia Bharat have gained over 1%, while other cement stocks like Shree Cement, ACC, Ramco Cement, and JK Cement are also trading in the green.
Here is a look at what’s driving this momentum in cement stocks 1. UBS turns bullish on Cement stocks
The biggest trigger for the rally was a shift in stance by global brokerage UBS. It upgraded UltraTech Cement and Ambuja Cement from “sell” and “neutral” to “buy,” while Dalmia Bharat moved up from “sell” to “buy.” According to UBS, the cement sector is set for a multi-year earnings upcycle, driven by cost efficiency and industry consolidation. The brokerage believes these structural improvements will significantly boost margins over the coming years.
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The cement sector has been undergoing rapid consolidation, and experts believe this trend will strengthen key players. According to a report by Crisil Ratings, mergers and acquisitions in the sector are expected to provide wider geographical reach, better access to limestone reserves, and cost efficiencies. Crisil highlighted that nearly 11% of India’s installed cement capacity has changed hands in the past two years – the highest ever in such a short span. This consolidation is expected to bring long-term stability and improved profitability for larger cement makers.
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Cement prices have seen uptick across regions on the back of steady demand. As per Yes Securities, the all-India average cement price rose by Rs 5 per bag in February 2025.
According to the brokerage, this price hike was fuelled by increased demand from the real estate sector, supported by better labor availability post-festive season. In addition, government-backed infrastructure projects have kept cement orders flowing. While near-term challenges like rising energy costs could impact margins,
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