India is the second-largest cement producer in the world after China, accounting for almost 7% of the total global installed capacity. In FY22, the domestic production of cement stood at 356 million tonnes, up from 296 million tonnes in FY23, and is expected to increase to 400 MT by the end of FY24. And the solid demand throughout the year consumes entire cement production domestically.
There are around 184 cement companies in India, as per DPIIT, Ministry of Commerce & Industry, and the top 20 companies account for 70% of the total cement production in India.
In this article, we will look at the top cement stocks in India and include stocks that are part of the Nifty Infrastructure Index and Nifty Commodity Index.
Top 5 Cement Stocks in India
- ACC
- Ambuja Cements
- Dalmia Bharat
- Shree Cements
- Ultratech
ACC
| Market Cap | CMP (as of 28th Nov 2023) | All-time High Level | PE Ratio | 5 yr CAGR Return | ROCE (FY23) |
| ₹ 35,091 crores | ₹1869 | ₹2,785 | 26.8 | 5% | 5% |
ACC is the leading cement player in India with a pan-India presence and is part of the Adani Group. The company has 17 cement manufacturing plants with 34.45 MTPA installed capacity. Previously, the company was a subsidiary of the Swiss-based Holcim Group and operated on a January-December fiscal year. And, since the fiscal year after Adani’s takeover, the company has followed the April to March fiscal year.
Between January 2022 and March 2023 (15 months), ACC reported a total income of ₹22,522 crores, compared to ₹16,358 crores for the year ending in December 2021. In Q2FY24, the company’s revenue increased by 14.4% to ₹4,644.78 crores, up from ₹4,057.08 crores in the same fiscal period. The company’s EBITDA margin during the quarter was 12.4% on a standalone basis.
Ambuja Cement
| Market Cap | CMP (as of 28th Nov 2023) | All-time High Level | PE Ratio | 5 yr CAGR Return | ROCE (FY23 |
| ₹ 85,735 crores | ₹431 | ₹598 | 28.9 | 15% | 8.1% |
Ambuja Cement, like ACC, is part of the Adani Group and was previously a part of the Holcim Group. It has an installed cement manufacturing capacity of 31 MPTA with six integrated cement manufacturing plants. Under Adani Group, ACC and Ambuja are working towards doubling the current cement manufacturing capacity to 140 MTPA by 2028.
Between January 2022 and March 2023, the company’s total income was ₹39,674 crores, compared to ₹29,317 crores for the year ending in December 2021. In Q2FY, the company reported a 9.1% increase in total income to ₹7,899.99 crores, up from ₹7,240.69 crores. The EBITDA margin during Q2FY24 was 17.5%.
Dalmia Bharat
| Market Cap | CMP (as of 28th Nov 2023) | All-time High Level | PE Ratio | 3 yr CAGR Return | ROCE (FY23) |
| ₹ 41,436 crore | ₹2,206 | ₹2,548 | 36 | 26% | 2.63% |
Dalmia Bharat is one of the oldest cement companies in India, founded in 1939. The company is the fourth-largest cement manufacturer in India, with an installed capacity of 43.7 MTPA, and plans to increase it to 46.4 MTPA by FY24.
During FY23, the company reported a 19.5% increase in total income to ₹13,678 crores from ₹11,446 crores in FY22. In the last 10 years, the company’s revenue has grown by a CAGR of 17%. The EBITDA margin during FY23 declined to 17.1% from 21.5% in FY22. And, in H1FY24, the company’s total income came in at ₹6,915 crores, up 9.1% from ₹6,334 crores recorded in H1FY23.
Shree Cement
| Market Cap | CMP (as of 14th Nov 2023) | All-time High Level | PE Ratio | 5 yr CAGR Return | ROCE (FY23) |
| ₹ 94,031 crores | ₹26,067 | ₹32,048 | 49.6 | 10% | 9.11% |
Shree Cement is a leading cement manufacturing company in Northern and Eastern India and was founded in 1984 in Rajasthan. In the last 11 years, the company’s cement manufacturing capacity has expanded from 13.5 MTPA in 2011-12 to 49.9 MTPA in 2022-23.
In FY23, the company’s total income increased by 17.7% to ₹18,311.41 crores from ₹15,555.45 crores in FY22. EBITDA margin was 20% in FY23. And, for H1FY23, the company’s total income increased by 18.3% to ₹10,166.01 crores from ₹8,592.12 crores in H1FY22.
UltraTech
| Market Cap | CMP (as of 14th Nov 2023) | All-time High Level | PE Ratio | 5 yr CAGR Return | ROCE (FY23) |
| ₹ 2,52,238 crore | ₹8,726 | ₹8,871 | 44.3 | 17% | 12% |
UltraTech is the Aditya Birla Group’s flagship and India’s largest cement company, with a consolidated installed capacity of 137.85 MTPA and 23 integrated manufacturing units. It is also the third-largest cement producer in the world with an additional global capacity of +100 MTPA, and its operations span UAE, Bahrain, and Sri Lanka.
During F23, the company earned a total income of ₹63,743.06 crores, up by 20% from ₹53,106.64 crores in FY22. EBITDA margin during FY23 was 16%. And, in H1FY24, the company reported a total income of ₹34,090.09 crores, up by 16.3% from ₹29,311.65 crores in H1FY23. The operating margin was steady at 17% for both periods.
Conclusion
As a cyclical sector, the growth in the price of cement stock depends a lot on the revival and growth of the economy. The government’s extensive focus on maintaining a +7% real GDP growth momentum over the next few years and their momentum on constructing roads, airports, heliports, and rail infrastructure to improve and develop regional connectivity and housing throughout India may help businesses. Cement remains a fundamental industry for India’s economic progress, considering a burgeoning demand for housing and infrastructure.
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