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Top 10 Cement Stocks in India 2023

01 Dec 2023

The cement industry makes up one of the eight main sectors in the country. It has traditionally been a very important business for the government and it has achieved great progress after independence as a result of the continued expansion in various parts of the nation.

Whether it be in an urban or rural location, each infrastructure plan, such as roads, railways, and residential, commercial, or industrial constructions, utilises cement. Also, the country's cement sector has seen a huge volume increase as a result of numerous government initiatives.

In this article, we've examined the top 10 cement stocks in India and identified some of the country's top cement producers that are seeing rapid growth. Continue reading to learn more about top cement stocks.

Indian Cement Stocks Industry

India's demand for cement as well as other related materials is rising as it builds its infrastructure and sets the foundation for the future. This is because of its large population and rapid infrastructural growth. India ranks as the second-biggest cement producer in the world, producing 7% of the global cement capacity. Total Indian cement production capacity climbed to roughly 262 million tonnes during FY21, an increase of 7.8%. This growth is significant in light of the shrinkage of the manufacturing and building sectors even during the pandemic and ensuing lockdowns.

According to IBEF figures, this large increase is predicted to continue. By 2025, it is anticipated that cement consumption would reach 550–600 MT, mostly due to the tremendous demand for residential, commercial, and industrial growth. The Indian government's efforts to enhance housing, notably PM Garib Kalyan Rojgar Abhiyan, MGNREGA, and state-level programs including public works projects and Matir Srisht, have also aided in lowering the need for housing.

Things To Take Into Account Before Buying Top Cement Stocks

Many factors affect how long the Top Cement Stocks 2023 as well as the Cement business will be viable. The elements are listed as follows:

1. Capital Costs: A significantly increased debt-to-equity ratio is common in the cement industry due to the high capital needs of the industry. Hence, the profit of cement companies is more negatively impacted by a rise in borrowing costs. 

2. Government Spending Expenditures on Infrastructure: Government-built infrastructure, including ports, bridges, roads, and buildings, provides a steady stream of need for cement.

3. Transportation Expenses: Businesses that mine commodities like coal and limestone should strategically locate these mines near manufacturing facilities and urban areas to save expenses. 

4. Growth in the Home Financing Market: More people will be able to purchase houses, and many more real estate projects will indeed be able to start.

Top Cement Stocks 2023

Now that we have a better understanding of this market, let's examine the top 10 cement stocks in India.

1. UltraTech Cement Ltd: The main business of UltraTech Cement Ltd in India is the production and sale of cement and products that are directly connected to cement. Ultratech Cement has been the most profitable cement maker globally, the third-most-popular cement firm outside of China, as well as the most lucrative cement company in India.

2. Grasim Industries Ltd: Grasim Industries Ltd has its corporate office in Mumbai. With its subsidiaries, Grasim has grown into several businesses since its start as a textile company in 1947, notably in the cement and financial sectors. This business is regarded as another leading cement stock in India.

3. Ambuja Cements Ltd: With an operation in 80 different countries and specialising in producing cement, aggregate, and concrete, Ambuja Cements ranks as the most prosperous cement maker in India. It's frequently referred to as India's top cement.

4. Shree Cement Ltd: The company makes and distributes cement and products linked to cement and ranks as one of the country's most reasonably priced cement makers. The two primary operations of this company are the manufacturing of cement and the selling of products related to cement. With such a 43.4 MTPA generation capacity, it's indeed India's third-largest cement producer.

5. ACC Ltd: Since its founding in 1936, ACC Limited has been an active member of the LafargeHolcim Corporation. The industry's main goals are the production and selling of cement and prepared concrete. The company has factories all over India and sells the majority of its products in the domestic Indian market.

6. Dalmia Bharat Ltd: DBL, a famous cement business with a 35.9 MTPA output, was established in 1939 by Shri Jaidayal Dalmia. With a system of more than 32,000 distributors plus sub-dealers, the business now has 14 manufacturing operations that service customers in 22 states.

7. JK Cement Ltd: It is one of the largest cement manufacturers in North India. Being among the biggest manufacturers in the country, JK Cement has an estimated grey concrete capability of 14.7 million tonnes annually (MnTPA).

8. Ramco Cement Ltd: As a part of the Ramco Group with its base in Chennai, Ramco Cement Ltd produces Fiber Cement (FC) sheeting and Calcium Silicate Boards (CSBs). In addition to spinning cotton yarn as well as producing computer software, this company also sells additional energy generated by its windmills.

9. Nuvoco Vistas Limited: Nuvoco Vistas Ltd, a Nirma Group firm, is a significant construction material manufacturer in India. It began operations in India via acquisitions in 1999 and has since risen as one of the country's key businesses. With the purchase of Nu Vista Ltd, Nuvoco is one of the top cement makers in India and the dominant player, delivering high-performing, premium, blended cement variations.

10. RHI Magnesita India Ltd: Previously known as Orient Refractories Ltd, it is one of the top producers of refractory materials in India. Refractories are primarily produced by the firm for the steel industry. Both in India and internationally, ORL products are sold. It provides a wide range of unusual refractories. Customers are served by three state-of-the-art production facilities that are situated in Andhra Pradesh, Rajasthan, and Odisha. 

Wrapping Up

Thus, investors often give cement stocks significant priority. In terms of development, the cement industry has moreover traditionally been one of the most dependable. While recent events have produced small fluctuations in the price of cement stocks, the industry is poised for long-term growth and will be a fantastic asset to any portfolio.

If you want to spread out your assets for a more diverse portfolio, you may always open a Demat account and start with stock trading first. The secret is to start small and gain experience until you are confident enough to invest huge sums and understand how the market operates. You might also look into any upcoming IPO investments since this is becoming a popular investing avenue.

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account 

 

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