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Top 5 Cement Stocks to Invest in India 2024

  


Hi dear readers, today we have come up for you with India’s top 5 Cement stocks in India 2024 blog. Our blog will cover India’s top 5 Cement stocks of companies contributing to the Nation’s construction, and infrastructural capabilities in 2024. 

As we all are aware Cement is an essential and flexible building material that is widely employed in modern construction projects. It securely holds coarse particles like gravel, sand, and steel. Despite the introduction of alternative building materials, cement is still used in construction because of its excellent strength and durability. Even infrastructure sectors such as bridges, dams, highways, and urban facilities require a large amount of cement manufacture.

The Indian cement sector, which is an important aspect of infrastructure development, has grown significantly in recent years.

We will see the growth of the cement industry in India in the below section.

 

Cement Industry in India- Overview

In this section, we are going to see the growth of the cement industry in India and where India stands globally in this industry.

India ranks as the world's second-largest cement producer, accounting for more than 7% of worldwide capacity. The cement business is critical to several industries, including infrastructure, construction, housing, transportation, and power generation. It is actively involved in government initiatives like as housing projects, concrete highway construction, smart city development, and cleanliness campaigns.

Private enterprises oversee around 98% of cement production, with the public sector accounting for the remainder. The top 20 companies account for over 70% of India's total cement output. With numerous high-quality limestone reserves around the country, the cement sector has substantial room for growth.

This sector is estimated to increase to 4.83 billion tons by 2028, with an annual growth rate of 4.94% in 2023-28. 

 

Top 5 Cement Stocks in India 2024

 

1. UltraTech Cement Ltd

UltraTech Cement Limited is India's leading producer of grey cement ready-mix concrete (RMC) and white cement when we talk about Top Cement Stocks in India. The company has over 230 ready-mix concrete (RMC) factories in over 100 cities. It sells white cement under the brand name Birla White.

UltraTech has a large international presence, with production plants in Sri Lanka, the United Arab Emirates, and Bahrain, in addition to India. The firm is India's largest cement exporter, serving markets in the Indian Ocean and the Middle East.

UltraTech Cement Limited’s industry P/E ratio is 41.40, ROE is 11.63%. The revenue of the company increased to 18,784 Cr in March 2023 from 17,911 Cr in June 2023. Its market cap is 3,24,464 Cr.

It is essential to inform our readers about its percentage of shares. This company has 59.95% reserved for promoters, 18.26% for foreign Institutions, 12.22% for mutual funds, Retail and other is 7.54%, and other domestic institutions are 2.02%

 

2. Grasim Industries Ltd

Grasim Industries Limited, part of the Aditya Birla Group, began operations as a textile manufacturing company in 1947. The company was founded just ten days after India's independence. Over time, it broadened its business to establish itself as a major participant in a variety of industries by Looking at the Cement Industries in India. 

The company is a significant manufacturer of viscose, other chemicals, linen yarn, and fabrics. Grasim Industries has investments in the paint, financial services, cement, and sustainable energy sectors.

Grasim Industries began producing fabric at its Gwalior facility in 1950. Four years later, it began producing VSF at its Nagda facility in Madhya Pradesh. In 1962, the corporation established an engineering division focused on plant and machinery. Grasim Industries established a composite textile plant in Bhiwani, Haryana, in 1963.

Grasim Industries Ltd’s industry P/E ratio is 28.87, ROE is 4.45%. The revenue of the company increased to 117627.08 Cr in March 2023 from 95701.13 Cr in March 2022. The company has a market cap of 1,55,177.61 Cr.

This company has 43.06 % reserved for promoters, 12.7% for foreign Institutions -FII, 6.09% for mutual funds, Retail and other 27.56%, and other domestic institutions 10.6%.

 

3. Ambuja Cements Ltd

Ambuja Cements Limited, formerly Gujarat Ambuja Cement Limited (GACL), is a significant operator in the cement sector in India. The company primarily manufactures cement and clinker. The Adani Group is India's third-largest cement maker, serving both domestic and foreign markets.

It was established in 1983 by Narotam Sekhsaria and Suresh Neotia. The company, which is a prominent player in the building materials market, is headquartered in Mumbai. As of December 16, 2023, Ambuja Cements' market capitalization exceeded ₹1.03 lakh billion. 

In 1986, the company began operations with a single facility with a capacity of 7 lakh tonnes annually. Ambuja Cements now has a cement production capacity of 3.1 crore tonnes and operates six integrated cement plants and eight cement grinding units across multiple states. Its bulk cement terminals are located in Surat, Panvel, and Kochi. Ambuja Cements' stock price has risen 111% in the last three years.

Ambuja Cements Ltd’s P/E ratio is 47.47, ROE is 8.09%. The revenue of the company increased to 33159.64 Cr in March 2024 from 38937.03 Cr in March 2023. The company has a market cap of 1,22,633.45 Cr.

Ambuja Cements Ltd has 66.74% shares reserved for Promoters, 11.09 % for foreign Institutions, 6.08% for mutual funds, Retail and partners 7.69%, and other domestic institutions 8.4%.

 

4. Shree Cement Ltd

Shree Cement Ltd manufactures cement and autoclaved aerated concrete blocks when we talk about top cement sector stocks in India. The company has established a cement production capacity of 46.4 million tonnes per annum (MPTA) in India alone, with a total capacity of 50.4 million tonnes including abroad operations. It also has a business stake in power generating, having 300 megawatts of installed commercial electricity and 452 megawatts of captive and green power.

The company sells cement under three brand names: Shree Ultra Jung Rodhak Cement, Bangur Cement, and Rockstrong Cement. Hari M Bangur, an industrialist headquartered in Calcutta, promotes Shree Cement.

The company's overall income for FY23 was ₹18,311 crore, up 17.71% from ₹15,555 crore in FY22. In FY23, the company reported a profit of ₹1,269 crore compared to ₹2,336 crore in FY22.

Shree Cement Ltd’s P/E ratio is 41.4 and ROE is 7.47%. The revenue of the company increased to 17852.33 Cr in March 2023 from 15009.56 Cr in March 2022. The company has a market cap of 92503.10 Cr.

Shree Cement Ltd has 62.55% reserved for promoters and foreign Institutions- FII 12.47%, Mutual funds 7.55%, Retail and other 12.64%, and other domestic institutions 4.77%.

 

5. ACC Ltd

ACC Limited (ACC) is a market leader in the construction materials & Cement sector in India. The company is now part of the Adani Group and is India's leading provider of Portland cement and ready-mix concrete.

The Associated Cement Businesses Limited (ACC) was established in 1936 by the merging of 10 existing cement businesses representing four major corporate groups: Tatas, Khataus, Killick Nixon, and F E Dinshaw. It was colonial India's first major merger at a time when mergers and acquisitions were almost unknown.

The ACC constructed India's first indigenous cement plant at Chaibasa, Bihar in 1947. The company has an installed cement manufacturing capacity of 36.05 MTPA, with its brand architecture classed as Gold and Silver category products. The business has erected the world's largest kiln, capable of producing 12,500 tonnes per day, at its cement facility in Wadi, Karnataka. 

In FY23, standalone revenue from operations climbed by 46.58% to ₹22,210 crore from ₹16,151 crore in the previous year.

ACC Limited (ACC)’s P/E ratio is 21.14, and ROE is 14.13%. It has reserved 56.69% for promoters, Mutual funds 14.5%, foreign Institutions- FII 6.17%, and 12.34% for Retail and others, and other domestic institutions 10.3%.

 

Conclusion

We trust that this blog has given you insightful knowledge about the Top 5 Cement Stock in India. For all such latest information on upcoming Stocks, keep visiting our website.

 

Disclaimer: We do not recommend any type of buying or selling activity through this blog. Always consult your Financial advisor before investing.

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Frequently Asked Questions

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Cement is an essential building material due to its excellent strength and durability. It securely holds coarse particles like gravel, sand, and steel together. Despite the introduction of alternative materials, cement remains vital for constructing bridges, dams, highways, and urban infrastructure due to its unmatched reliability and flexibility.

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India is the world's second-largest cement producer, accounting for over 7% of global capacity. The cement industry is integral to infrastructure development, supporting sectors such as housing, transportation, and power generation. The industry is primarily driven by private enterprises, which oversee around 98% of production. With significant limestone reserves, the sector is poised for further growth, projected to reach 4.83 billion tons by 2028, with an annual growth rate of 4.94% from 2023-2028.

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The top cement producers in India include:

  • UltraTech Cement Ltd: The leading producer, known for its extensive RMC plants and international presence.
  • Grasim Industries Ltd: Part of the Aditya Birla Group, with diversified interests including textiles and financial services.
  • Ambuja Cements Ltd: A significant player in both domestic and international markets, part of the Adani Group.
  • Shree Cement Ltd: Known for its significant production capacity and involvement in power generation.
  • ACC Ltd: A historic leader in the sector, now part of the Adani Group, known for its extensive manufacturing capacity and innovative infrastructure.
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  • UltraTech Cement Ltd: P/E ratio of 41.40, ROE of 11.63%, with a market cap of ₹3,24,464 Cr.
  • Grasim Industries Ltd: P/E ratio of 28.87, ROE of 4.45%, with a market cap of ₹1,55,177.61 Cr.
  • Ambuja Cements Ltd: P/E ratio of 47.47, ROE of 8.09%, with a market cap of ₹1,22,633.45 Cr.
  • Shree Cement Ltd: P/E ratio of 41.4, ROE of 7.47%, with a market cap of ₹92,503.10 Cr.
  • ACC Ltd: P/E ratio of 21.14, ROE of 14.13%, with a market cap of ₹22,210 Cr.
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The Indian cement industry faces challenges such as increasing raw material costs, stringent environmental regulations, and competition from alternative building materials. Companies are addressing these challenges through innovation, improving operational efficiency, and investing in sustainable practices. For instance, UltraTech and Ambuja are focusing on enhancing their R&D capabilities to develop eco-friendly products, while Grasim and Shree Cement are expanding their production capacities to meet growing demand.



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