Top 5 Cement Stocks to Invest in India 2024

Hello dear readers. Today we’ve come up to our readers India’s Top 5 Cement Stocks blog. The blog will discuss the top five Indian Cement stocks that are owned by companies who contribute to India’s infrastructure, construction and infrastructure capabilities.

As we are all aware Cement is a vital and flexible construction material that is extensively used in contemporary construction work. It holds fine elements like sand, gravel as well as steel. Even with the development of new construction material, cement remains employed in construction due to its strength and endurance. Many infrastructure fields like highways, bridges and dams as well as urban infrastructure will require large quantities of cement manufacturing.

The Indian cement industry that is a key component of the infrastructure’s development has seen significant growth in recent time.

It will be evident the expansion of India’s cement manufacturing industry India in the next section.

Cement Industry in India- Overview

In this part in this section, we will examine the development that the industry of cement in India as well as where India has a place in the world sector.

India is the second largest cement producer with more than 7percent of the world’s capacity. Cement is essential for a variety of industries, such as construction, infrastructure transportation, housing and energy generation. The company is participating in initiatives of the government such including housing developments and concrete highway construction smart city development, as well as cleaning campaign.

Private firms control almost 90% of the cement manufacturing and the government sector making up the rest. The top 20 firms make up more than 70% of India’s cement production. There are numerous limestone deposits of high quality throughout the country and the sector of cement is a great opportunity for growth.

The industry is expected to rise up to 4.83 billion tonnes before 2028. It is expected to grow at a growth rate of 4.94 percent between 2023 and 2028.

1. UltraTech Cement Ltd

UltraTech Cement Limited is India’s largest producer of grey ready-mix concrete (RMC) as well as white cement. The company operates more than 300 ready-mix concrete (RMC) manufacturing facilities spread across more than 100 cities. It offers white cement with the brand Birla White. Birla White.

UltraTech has an extensive global presence with manufacturing facilities within Sri Lanka, the United Arab Emirates as well as Bahrain as well as India. UltraTech is India’s leading cement exporter and serves markets that are located in India’s Indian Ocean and the Middle East.

UltraTech Cement Limited’s market P/E ratio stands at 41.40, ROE is 11.63 percent. The company’s revenue has increased by 18,784 Cr in March 2023, up from 17911 Cr at the end of June in 2023. Its market capitalization is 3,244,464 Cr.

It is important to let our readers know the percentage of shares owned by this company. The firm has 59.95 percentage set aside for promoters. 18.26 percent for foreign institutions, 12.22% for mutual funds, retail and other are 7.54 percentage, and the other local institutions have 2.02 percentage.

2. Grasim Industries Ltd

Grasim Industries Limited, part of the Aditya Birla Group, began activities as a production firm in 1947. The business was created 10 days following the declaration of independence in India. In time, it diversified its scope of operations, establishing its position as a key player across a range of sectors.

The firm is a leading manufacturer of viscose as well as other chemical products, yarns made of linen as well as fabrics. Grasim Industries has investments in the financial services, paint as well as cement and the sustainable energy sector.

Grasim Industries began producing fabric at its Gwalior plant in 1950. The following year, it started producing VSF in its Nagda plant located in Madhya Pradesh. In 1962, the firm created an engineering department that with a focus on machinery and plant. Grasim Industries established a composite textile manufacturing plant situated in Bhiwani, Haryana, in 1963.

The industry’s P/E is 28.87, ROE is 4.45 percent. The company’s revenue has increased by 117627.08 Cr at the end of March 2023 from 95701.13 Cr as of March 2022. The company’s market capitalization at 1,55,177.61 Cr.

The firm has 43.06 percent of its profits set aside for promoters. 12.7 percent for foreign institutions FFI, 6.09 percentage in retail and mutual funds. There are additional 27.56 percent. Other national institutions 10.6 10%.

3. Ambuja Cements Ltd

Ambuja Cements Limited, formerly Gujarat Ambuja Cement Limited (GACL) is an important company in the field of cement. It is the main producer of cement as well as Clinker. Adani Group Adani Group is India’s third-largest cement producer, catering to international and domestic markets.

The business was started at the end of 1983 through Narotam Sekhsaria as well as Suresh Neotia. It is an important player in the construction materials industry with its headquarters in Mumbai. On the 16th of December, 2023 Ambuja Cements’ market capitalization over Rs1.03 million billion.

The company was founded in 1986. was established with just one plant that could produce 7 lakh tonnes per year. Ambuja Cements now has a cement capacity of 3.1 crore tonnes. It operates six cement plants that are integrated and eight grinding facilities for cement across several states. The bulk cement terminals of the company are at Surat, Panvel, and Kochi. Ambuja Cements’ stock price is up 111% in the past three years.

Ambuja Cements Ltd’s ratio of P/E of 47.47, ROE is 8.09 percent. The company’s revenue has increased by 33159.64 Cr in March 2024 after 38937.03 Cr in March 2023. The company’s market capitalization in the amount of 1,22,633.45 Cr.

Ambuja Cements Ltd has 66.74 percentage of shares that are reserved for Promoters. 11.09 percent of foreign institutions, 6.08% for mutual funds, Retail and partners 7.69 percent, and for other local institutions 8.4%..

MF Investment

4. Shree Cement Ltd

Shree Cement Ltd manufactures cement and autoclaved aerated concrete block. The company has set up the capacity to produce cement in the range of 46.4 million tonnes annually (MPTA) within India by itself, and the capacity total that is 50.4 million tonnes that includes overseas operations. The company also holds a part in power generation, comprising 300 megawatts of commercially installed electricity, and 452 megawatts in green and captive energy.

The firm offers cement with three brands that include Shree Ultra Jung Rodhak Cement, Bangur Cement, and Rockstrong Cement. Hari M Bangur, an industrialist with a base in Calcutta has been promoting Shree Cement.

The overall earnings of the business in FY23 was a staggering 18,311 crores, which is an increase of 17.71 percentage from the amount of Rs15,555 in FY22. The company earned a profit of $1,269 crore, compared to a profit of Rs.2,336 crore for FY22.

Shree cement’s P/E ratio is 41.4 and its ROE is 7.47 74.7 %. The revenues of the company was increased by 17852.33 Cr in March 2023 after 15009.56 Cr in March 2022. The company is listed with a market capitalization in the range of 92503.10 Cr.

Shree Cement Ltd has 62.55 percent reserved for promoters as well as foreign institutionssuch as FII 12.47 percent, Mutual funds 7.55%, Retail and other 12.64 percent, as well as other national institutions 4.77 percent.

5. ACC Ltd

ACC Limited (ACC) The company is an industry leading company in the construction materials industry. The company is an integral part of the Adani Group and is India’s most renowned supplier of Portland cement as well as ready-mix concrete.

The Associated Cement Businesses Limited (ACC) was founded in 1936 through the merger of 10 cement companies that comprised four corporate giants: Tatas, Khataus, Killick Nixon, and F E Dinshaw. This was India’s first colonial large-scale merger during a time in which mergers and acquisitions had become virtually unheard of.

The ACC established India’s very first local cement plant in Chaibasa, Bihar in 1947. It has an established cement manufacturing capacity of 36.05 MTP, and its branding architecture classified as Silver and Gold category items. It has built the largest kiln in the world, capable of making 12,500 tonnes of cement every day at its plant for cement located in Wadi, Karnataka.

For FY23, the revenue from operations increased up 46.58 percentage to Rs22210 crore, up from Rs16,151 crore the prior year.

ACC Limited (ACC)’s P/E ratio is 21.14 The company’s P/E ratio is 21.14, while its ROE is 14.13 percent. The company has set aside 56.69 percent for promoters. Mutual funds 14.5 percent, foreign institutionssuch as FII FII 6.17 percent, 12.34 percent for Retail and other, as well as other local institutions 10.3 percent.

Conclusion

We are sure that this blog will provide you with valuable information regarding the Cement sector and the leading Indian companies’ stock. To get the latest news regarding coming Stocks visit our site.

Disclaimer: We cannot endorse any specific type purchase or sale via this blog. Always consult your Financial advisor before investing.

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Frequently Asked Questions

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The reason why cement is considered to be an essential material for modern construction?

Cement is an important construction material because of its exceptional strength and endurance. It holds large pieces of sand, gravel as well as steel. Even with the development of new material, cement is still essential in the construction of dams, bridges highways, roads, and other urban infrastructure because of its unbeatable reliability and adaptability.

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What’s the state of affairs of the cement sector in India?

India is second in the world as a cement manufacturer, with more than 7% of the world’s capacity. The industry of cement is essential to the development of infrastructure, and supports areas like transportation, housing, and energy generation. It is driven mainly by private firms, who control approximately 98% of the production. There are significant limestone reserves this sector has the potential for growth that is expected to grow to 4.83 billion tonnes in 2028. This will be accompanied by a growth rate of 4.94 percent between 2023 and 2028.

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Which are the most renowned cement manufacturers in India?

The biggest cement producers in India are:

• UltraTech Cement Ltd: It is the most prominent producer recognized for its vast RMC plant and its international reach.
• Grasim Industries Ltd: part of the Aditya Birla Group, with various interests, including textiles and financial services.
• Ambuja Cements Ltd: An important player on both international and local markets. Part of the Adani Group.
• Shree Cement Ltd. The company is known for its large capacity for production and its involvement in the power generation.
• ACC Ltd: An iconic leader in this sector. It is now an integral part of the Adani Group, known for its vast capacity for manufacturing as well as its ingenuous infrastructure.

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What are some of the key indicators of the financials and market position of these top cement firms?

• UltraTech Cement Ltd: P/E ratio of 41.40, ROE of 11.63 percentage, and the market capitalization of Rs3,244,464 Cr.
• Grasim Industries Ltd: P/E ratio of 28.87, ROE of 4.45 percent, with an estimated market capitalization of Rs1,55,177.61 Cr.
• Ambuja Cements Ltd: P/E ratio of 47.47, ROE of 8.09 0.9%, and an estimated market capitalization of Rs1,22,633.45 Cr.
• Shree Cement Ltd: P/E ratio of 41.4, ROE of 7.47 7 % and the market cap at Rs92,503.10 Cr.
• ACC Ltd: P/E ratio of 21.14, ROE of 14.13 percent, and an estimated market capitalization of the equivalent of Rs 22,210 crore.

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What are the challenges that the Indian cement industry have to face and what strategies are being employed by companies to address the issues?

The Indian cement industry faces hurdles including rising prices for raw materials, the need to adhere to strict environmental regulations, as well as rising competition from other construction material. The companies are responding to these issues with innovation, improving productivity, and investing in environmentally sustainable processes. As an example, UltraTech and Ambuja are focused on improving their capabilities in R&D to create environmentally friendly products. Likewise, Grasim as well as Shree Cement are expanding their capacity to accommodate the growing requirements.