Cement Stocks to Buy: After a long wait, there is hope of a good recovery in the cement sector. According to a report by brokerage firm Centrum Broking, the cement sector may perform well in the next few years. Better demand, rising prices and stable operating costs have created new opportunities for the cement industry. FY26 and FY27 are being called “Golden Years” for the cement sector.
The report said cement prices, especially in the non-trade segment, are picking up again. Prices will see an improvement of ₹300 per tonne in Q4FY25. This can lead to a huge jump in the earnings of companies. At the same time, demand is also gaining momentum. Demand is expected to grow by 9-10% in FY26 due to increasing government capex, increased demand in rural areas and new projects in urban areas.
Centrum Broking has included Ambuja, UltraTech, Birla Corp and JK Lakshmi among its top picks in its report. These companies can take maximum advantage of rising demand and prices. The brokerage says that companies which have strong financial and operating positions will be the most profitable.
The brokerage firm believes that the profit level (EBITDA per tonne) of the cement sector could create a new record in the next few years. It may increase by ₹330 per tonne between FY25 to FY27. The report said that large M&A deals in the sector have reduced competition, which is helping companies raise prices.
However, Centrum cautioned that if competition suddenly increases or demand weakens, it could impact prices and profits. But the signs so far are positive.
Brokerage reports say that this sector is now ready to boom. If you want to share in the profits, this could be the right time. Companies like Ambuja, UltraTech, Birla Corp, and JK Lakshmi are set to lead this growth.
(Disclaimer: The advice on stocks here is given by the brokerage. Investing in the market is subject to risks. Consult your advisor before taking any investment decision.)