Welcome to the world of cement stocks in India! If you’re an investor looking for promising opportunities, then this blog post is your ultimate guide. Cement companies have always played a vital role in the growth and development of infrastructure, making them a lucrative investment option.
With 2023 just around the corner, we have carefully curated a list of the top 10 cement company stocks in India that are poised to deliver exceptional returns and set new benchmarks in the industry. So fasten your seatbelts as we take you on a thrilling journey through these cement giants and explore why they should be on every astute investor’s radar.
Introduction to Cement Company Stocks
There are many cement companies in India, but which are the best stocks to buy? This is a question that many investors ask, and there are many factors to consider when making a decision. Here, we will take a look at some of the best cement company stocks in India and what makes them a good investment.
Cement Industry Overview in India
The Indian cement industry is the second largest in the world, with a total installed capacity of nearly 500 million tonnes. The industry is fragmented, with around 200 players operating in the market. The top 10 cement companies account for more than 50% of the total installed capacity. The industry is expected to grow at a CAGR of 7-8% over the next few years.
The cement sector is an important contributor to the country’s economy, contributing around 5-6% of GDP. The per capita consumption of cement in India is around 140 kgs, which is much lower than the global average of 500 kgs. The low per capita consumption provides considerable scope for future growth.
With increasing infrastructure spend and housing demand, the cement sector is expected to grow at a healthy pace over the next few years. Housing and construction are the two major segments that drive demand for cement in India.
Top 10 Cement Company Stocks in India:
The Indian cement industry is one of the largest in the world with a production capacity of over 500 million tonnes per annum. The sector employs over 1 million people and has an annual turnover of around Rs 200 billion. The cement industry is an important driver of economic growth in India and is expected to continue growing at a healthy pace in the coming years.
There are a large number of cement companies operating in India, with a majority of them being listed on the stock exchanges. Here is a list of the top 10 cement company stocks in India, based on their market capitalization:
1) UltraTech Cement – UltraTech Cement is the largest cement company in India with a market capitalization of over Rs 1 trillion. The company has a strong presence across all major markets in India and also has significant operations in UAE, Bahrain, Bangladesh, and Sri Lanka. UltraTech Cement is part of the Aditya Birla Group, one of the largest conglomerates in India.
2) ACC Ltd – ACC Ltd is another large cement company in India with a market cap of over Rs 90 billion. The company has a wide network of plants across the country and also has an international presence, with operations in Nepal, Malaysia, UAE, Egypt, and China. ACC Ltd is part of LafargeHolcim, one of the world’s largest building materials companies.
3) Ambuja Cements – Ambuja Cements is another large cement company in India with a market cap of over Rs 80 billion. The company has plants in several Indian states and also operates internationally, with operations in Bangladesh, UAE, Sri Lanka, and Nepal. Ambuja Cements is part of the Swiss-based LafargeHolcim Group.
4) Shree Cements – Shree Cements is a leading cement company in India with a market cap of over Rs 70 billion. The company has an extensive presence across several states in India as well as an international presence, with operations in Nepal, UAE, Bahrain, and China. Shree Cements is part of the BK Birla Group.
5) JK Cement – JK Cement is another leading cement company in India with a market cap of over Rs 45 billion. The company has a wide network of plants across the country and also operates internationally, with operations in UAE and Bangladesh. JK Cement is part of the JK Organization founded by Lala Kamlapat Singhania.
6) Ramco Cements – Ramco Cements is another large cement company in India with a market cap of over Rs 25 billion. The company has plants spread across several Indian states as well as international operations in Sri Lanka and the UAE. Ramco Cements is part of the Chennai-based Ramco Group.
7) Birla Corporation – Birla Corporation is a leading cement company in India with a market cap of over Rs 20 billion. The company has an extensive presence across several Indian states and also operates internationally, with operations in Nepal, Bangladesh, UAE, and South Africa. Birla Corporation is part of the MP Birla Group founded by Ghanshyam Das Birla.
8) Orient Cement – Orient Cement is another major cement company in India with a market cap of over Rs 10 billion. The company has plants spread across several Indian states and also operates internationally, with operations in Kenya and Myanmar. Orient Cement is part of the CK Birla Group established by G D Birla.
9) Mangalam Cement – Mangalam Cement is a small cement company in India with a market cap of around Rs 5 billion. The company has plants spread across several Indian states and also operates internationally, with operations in UAE and Bahrain. Mangalam Cement is part of the Aditya Birla Group founded by Kumar Mangalam Birla .
10) India Cements – India Cements is another small cement company in India with a market cap of around Rs 4 billion. The company has plants spread across several Indian states and also operates internationally, with operations in Sri Lanka and UAE. India Cements is part of the N Srinivasan Group founded by N Srinivasan.
FAQ’s
- Is it good time to invest in cement stocks?
Since cement stocks are cyclical, the best time to buy them is at the start of an economic expansion. The best time to sell them is just before the economy begins to slow down. Investing in a cement stock at the peak of an economic cycle could result in a huge chunk of the investment being wiped it.
- What is the future demand for cement?
The Cement market in the U.S. is estimated at 2.7 Billion Tons in the year 2022. China, the world`s second largest economy, is forecast to reach a projected market size of 3 Billion Tons by the year 2030 trailing a CAGR of 7.6% over the analysis period 2022 to 2030.10-Feb-2023
- Which cement is more strong?
OPC cement has higher initial strength compared to PPC cement. However, over a longer period of time, PPC concrete develops higher strength than OPC concrete due to the pozzolanic materials present in PPC cement.