Best Cement Stocks To Invest in India | Stock Picks For Cement Sector 

Cement as a raw material has been indispensable to India’s infrastructure growth. From the biggest luxury apartments to the smallest establishments, cement is a crucial material used in these constructions. The rising disposable incomes, aspiring Indian youth and easy access to housing loans are some of the key factors that have fueled the country’s infra growth, further resulting in enhanced financials and valuations of cement companies. 

The extensive growth of cement companies in India is also reflected in cement stocks.  Cement company stocks in India like Ambuja Cement, ACC Limited and Anjani Limited have experienced significant price appreciation over a period, because of rising demand for cement. 

If you also want to invest and generate significant returns, then scroll down to access a list of the best cement stocks in India, which can help you ease your investment journey in the cement industry. 

Top 10 Cement Stock List As Per Market Capitalisation 

*Data is updated as of 11th March 2025 

Cement Industry – A Brief Introduction 

India stands at a significant position in the global cement industry. Currently, India holds the position of being the second largest producer of cement in the world, accounting for 8% of the global installed capacity. The cement produced in the country is used extensively in each sector and sub-sector of the economy, including agriculture, housing, commercial and retail real estate, railways and other government initiatives. 

As for  FY23 India clocked cement production of 374.55 million tonnes with a growth rate of 6.83% year-on-year basis. India’s cement production is concentrated in the southern region, with nearly 32% share, followed by 20% in the North, 13% in the central region, 15% in West India and 20% in East India. 

As per the data on IBEF, India’s cement industry reached 3.96 billion tonnes and is expected to touch a valuation of 5.99 billion tonnes by 2032. During this period (2024-2032), the CAGR of the industry is expected to be 4.7 %. 

Overview of The Best Cement Stocks in India

UltraTech Cement Limited 

Ultractech Cement Limited was established in 1983. It is the cement flagship company of the Aditya Birla Group, the largest manufacturer of grey cement and ready mix concrete (RMC) in India. Besides India, Ultratech Cement Limited also operates its business in UAE, Bahrain, and Sri Lanka. 

The company has a consolidated production capacity of 183.06 million tonnes per annum of grey cement, with 34 integrated manufacturing units, 34 grinding units, 1 clinkerisation unit and 8 Bulk Packaging Terminals. It has an approximate market reach of 80% in India. 

Ambuja Cements Limited 

Ambuja Cements Limited was founded in 1983 and is currently a subsidiary company of the Adani group. The company’s product portfolio includes Ambuja Cement, Ambuja Plus, Ambuja Compocem, and Ambuja Kawach. Ambuja Cement Limited started production with a single plant in 1986, which had a capacity of 700,000 tonnes per annum. The company has a capacity of 78.9 million tonnes per annum (MTPA) spread across 43 manufacturing facilities, including 18 integrated plants. 

Shree Cement Limited 

Shree Cement Limited was incorporated in 1979, and it established its first plant in Rajasthan in 1983. The production of the company was started in 1985. Currently, the company has a total cement production capacity of 53.4 MTPA and 983MW total power generation capacity. The production of Shree Cement Limited is spread across a network of 5 integrated plants, 6 ready-mix concrete units and 11 grinding units. 

As of 31st March 2024, the company has zero net debt and is cash positive with a shareholders’ equity of Rs 20,384.49 crores. The permanent workforce of Shree Cement Limited includes 7.073 employees. 

ACC Cement Limited 

ACC Cement Limited was established in 1936 as a result of the merger of 10 cement companies. As per the figure of 31st March 2024, the company has 18 cement manufacturing units, 82+ ready-mix concrete plants and a vast distribution network. ACC Cement Limited became a part of the Adani Group in 2022. 

JK Cements Limited 

JK Cement Limited commenced its operations in May 1975 in Rajasthan. It is considered one of the leading manufacturers of grey cement in India and one of the leading cement manufacturers in the world. It has a current capacity of 24 MTPA for grey cement, a total white cement capacity of 1.20 MTPA and a wall putty capacity of 1.2 MTPA. 

Best Cement Stocks With Dividend Yield 

*Data is updated as of 11th March 2025

Best Cement Stocks With 3 Years Return 

*Data is updated as of 11th March 2025

Disclaimer: The above cement stocks are mentioned for informational purposes only. You must conduct your own research to invest in these stocks to generate the highest possible returns.

Factors Affecting Cement Stocks in India 

Company Financials 

Before investing in cement stocks, it is important to check the financial health of the underlying company. By doing so, you can analyse future profitability because if a cement company does not have the potential to generate sufficient profits, then it might not be the right choice for investment. 

Supply Chain Health

Raw materials such as limestone, clay and sand are crucial for cement production and form a significant portion of the supply chain. Thus, you must be cautious about the challenges cement companies face in supply chain management and raw materials costs to identify and invest in the best cement stocks in India. 

Industry Competitiveness

As the Indian economy is growing, and we are experiencing a surge in new-age companies in each sector, including the cement industry. Thus, rising competition can affect your investment decision while choosing the right cement stocks.

Macroeconomic Trends 

It is vital to assess how the economy is behaving in terms of growth, consumer demand, and other aspects before investing in the cement stocks. For example, if there is a downfall in the infrastructure sector, then there is a high chance that cement stocks can experience negative price momentum due to lower demand for cement.

Technological Innovations 

Technological developments allow cement companies to enhance their production capacity using environment-friendly methods, which also results in decreased cost and improved top and bottom lines. Therefore, you must identify cement stocks which represent companies that are operating in line with new technologies. 

Advantages of Investing In Best Cement Stocks

Government Push 

The government constantly works on upgrading the lifestyle of its citizens, which primarily includes infrastructure developments such as affordable housing projects, road construction, and other projects. Cement forms the core raw material for developing these infra projects, resulting in higher revenue and stock prices for cement companies. 

Long-Term Growth Potential 

Best cement stocks in India are expected to grow at a good pace, backed by the rising demand for houses, corporate offices, and commercial and retail spaces. This demand is expected to sustain for more extended periods in India due to rising population and income levels, eventually leading to long-term growth in cement stocks in India. 

Diversification 

Through cement stock investing, you can reap the benefits of portfolio diversification. It will enable you to distribute your risk into the construction and cement sectors resulting in an enhanced return profile. 

Dividend Income 

Many times the best cement stocks in India with consistent profit growth and positive cashflow balances offer a good dividend yield to investors to reward investors for their capital. 

How To Analyse Cement Stocks in India? 

A good research and analysis can lead to better returns and robust portfolio building. Therefore, in-depth analyses of the best cement stocks a crucial for identifying and picking the right share for long-term investing. Read the below points to learn more about methods and metrics that can be used to pick the right cement stock in India. 

Company Financials 

The financial statements of a cement company are crucial for assessing how much earnings and returns the company can generate from its operations. Financial statements analysis also provides insights into the potential return you can generate from the best cement stocks in India based on the projected profitability and cash flows. 

Ratio Analysis

Ratio analysis refers to using financial ratios to gauge the financial health of cement companies. The primary financial metrics include: 

Return on Capital Employed (ROCE)

Price to Book (P/B) Ratio 

Earnings per share (EPS)

Net Profit Margin

Debt-to-Equity (D/E) Ratio 

Asset Turnover Ratio 

Return on Equity Ratio (ROE)

Competitor Analysis

Performing thorough research about the existing and upcoming competition relative to your cement stocks is essential to understanding the leadership standing of the underlying company. This will help you make better investment decisions and provide you with the best investment choices among all the stocks.  

Business Model 

Analysing a company’s business model can provide significant insights into how cement stocks can move in the future in accordance with the performance of its underlying cement sector company. 

Technical Analysis

Technical analysis comprises trend and price analysis of cement stocks in India. Through the use of technical indicators such as Relative Strength Indicators (RSI), Volume oscillators, Golden Crossover and others, you can identify the right entry and exit points for the best cement stocks. 

Investing in The Best Cement Stocks in India

Since we have grasped a gist of the best cement stocks in India, now we must know about the best method to invest successfully in the best cement stocks. To invest in these stocks, you must first do in-depth research and analysis and then place a buy order for the desired quantity of the best cement stocks in India. If you don’t have an existing demat account, you can open a new demat account with Univest and start your investment journey in the cement industry. 

Wrapping Up 

• Cement stocks in India represent Indian companies listed on the stock exchange which are engaged in the business of producing and selling cement. 
• Cement stocks in India form an important part of the stock market as these equity shares experience price movement based on the wide spread usage of cement in the country. 
• Best cement stocks in India can be an excellent opportunity for investors to earn a substantial return in the long term and diversify their portfolio in the construction and cement sector.
• To invest successfully in the best cement stocks, you must perform through fundamental and technical analysis. 

Frequently Asked Questions on Best Cement Stocks in India

Which are the best cement stocks?

The best cement stocks in India with a high return on capital employed (ROCE) are: 

*Data is updated as of 11th March 2025

Is ACC Cement Limited owned by Adani Group?

Yes, ACC Limited is a subsidiary company of Adani Group. It became a part of the Group in 2022. 

Which is the largest cement company in India? 

Ultratech Cement Limited is the largest cement company in India. The company posted a consolidated profit of 7,004 crores in FY 2024 with an operating profit margin of 18 % in the same period. 

What are cement stocks in India? 

Cement stocks in India refer to equity shares of those companies that are engaged in the business of manufacturing, distribution, and selling of cement in India. 

Who should invest in the cement sector stocks? 

Cement stocks are suitable for investors looking to diversify their portfolios into the construction and cement sectors. Additionally, investors with long-term growth potential, familiarity with the infrastructure sector and moderate risk tolerance levels can invest in the best cement stocks in India. 

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Disclaimer: This is for general information and education purposes only. The Securities quoted (if any) are for illustration only and are not recommendatory. Past performance does not guarantee any future returns. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.