Target prices for cement stocks: UltraTech, ACC, Ambuja, JSW Cement, Ramco, Star Cement
JM Financial remains constructive on select heavyweights and mid-caps. "Our top picks are UltraTech in large caps and JK Cement in mid-caps," it said.
- Dec 4, 2025,
- Updated Dec 4, 2025 12:18 PM IST
The Indian cement sector, typically banking on a seasonally strong third quarter to boost profitability, may face disappointment this time around. Brokerage firm JM Financial said a recovery in margins appears challenging as the industry grapples with a double whammy of sliding cement prices and rising input costs.
While the October-December period usually sees a profitability improvement of Rs 150-200 per tonne, the brokerage notes that ‘this time the recovery appears challenging’ and is likely to land below the historical range.
The festive cheer didn't quite translate into pricing power for cement manufacturers in November. The brokerage's channel checks revealed that pan-India average cement prices declined -1% MoM to stand at Rs 336 per bag. Even when adjusted for GST rate cuts, prices have corrected by about 2% on a quarter-to-date basis.
The decline was felt across the board, with the East and South regions witnessing a sharper 3% drop. "The price gap between non-trade and trade segments has widened further across regions," it said, adding it is now likely hovering between Rs 50-60 per bag.
On the demand front, while industry volumes likely grew in high single digits year-on-year in November, the growth story had its speed bumps. JM Financial pointed out that "demand in a few pockets remained slightly soft due to the Bihar elections, construction restrictions in Delhi related to pollution, lower labour availability, and the busy marriage season."
Compounding the pricing pressure is the resurgence of fuel costs. The report flags that spot US petcoke prices have climbed approximately 7% compared to the second-quarter average, currently standing at USD 117 per tonne.
"Along with rupee depreciation, this is expected to increase input costs by Rs 50-60/tn," it said. This creates a difficult environment where companies are unable to pass on rising costs to consumers due to the aggressive market share strategies by larger players and rising supply.
Target Prices for cement stocks
Despite the near-term headwinds, JM Financial remains constructive on select heavyweights and mid-caps. "Our top picks are UltraTech in large caps and JK Cement in mid-caps," it said.
UltraTech Cement: The brokerage maintains a ‘Buy' rating with a target price of Rs 14,250.
Ambuja Cements: Assigned a 'Buy' rating with a target price of Rs 700.
JK Cement: A top pick in the mid-cap space, it holds a 'Buy' rating with a target price of Rs 6,700.
Shree Cement: The firm has an ‘Add’ rating on the stock with a target price of Rs 31,000.
Dalmia Bharat: Maintained as an ‘Add’ with a target price of Rs 2,550.
ACC: The brokerage has a ‘Reduce’rating with a target price of Rs 1,970.
Ramco Cements: Also carries a ‘Reduce’ rating with a target price of Rs 1,000.
Birla Corp: Assigned a 'Buy' rating with a target price of Rs 1,500.
Star Cement: Rated 'Buy' with a target price of Rs 310.
JSW Cement: Rated 'Buy' with a target price of Rs 170.
The Indian cement sector, typically banking on a seasonally strong third quarter to boost profitability, may face disappointment this time around. Brokerage firm JM Financial said a recovery in margins appears challenging as the industry grapples with a double whammy of sliding cement prices and rising input costs.
While the October-December period usually sees a profitability improvement of Rs 150-200 per tonne, the brokerage notes that ‘this time the recovery appears challenging’ and is likely to land below the historical range.
The festive cheer didn't quite translate into pricing power for cement manufacturers in November. The brokerage's channel checks revealed that pan-India average cement prices declined -1% MoM to stand at Rs 336 per bag. Even when adjusted for GST rate cuts, prices have corrected by about 2% on a quarter-to-date basis.
The decline was felt across the board, with the East and South regions witnessing a sharper 3% drop. "The price gap between non-trade and trade segments has widened further across regions," it said, adding it is now likely hovering between Rs 50-60 per bag.
On the demand front, while industry volumes likely grew in high single digits year-on-year in November, the growth story had its speed bumps. JM Financial pointed out that "demand in a few pockets remained slightly soft due to the Bihar elections, construction restrictions in Delhi related to pollution, lower labour availability, and the busy marriage season."
Compounding the pricing pressure is the resurgence of fuel costs. The report flags that spot US petcoke prices have climbed approximately 7% compared to the second-quarter average, currently standing at USD 117 per tonne.
"Along with rupee depreciation, this is expected to increase input costs by Rs 50-60/tn," it said. This creates a difficult environment where companies are unable to pass on rising costs to consumers due to the aggressive market share strategies by larger players and rising supply.
Target Prices for cement stocks
Despite the near-term headwinds, JM Financial remains constructive on select heavyweights and mid-caps. "Our top picks are UltraTech in large caps and JK Cement in mid-caps," it said.
UltraTech Cement: The brokerage maintains a ‘Buy' rating with a target price of Rs 14,250.
Ambuja Cements: Assigned a 'Buy' rating with a target price of Rs 700.
JK Cement: A top pick in the mid-cap space, it holds a 'Buy' rating with a target price of Rs 6,700.
Shree Cement: The firm has an ‘Add’ rating on the stock with a target price of Rs 31,000.
Dalmia Bharat: Maintained as an ‘Add’ with a target price of Rs 2,550.
ACC: The brokerage has a ‘Reduce’rating with a target price of Rs 1,970.
Ramco Cements: Also carries a ‘Reduce’ rating with a target price of Rs 1,000.
Birla Corp: Assigned a 'Buy' rating with a target price of Rs 1,500.
Star Cement: Rated 'Buy' with a target price of Rs 310.
JSW Cement: Rated 'Buy' with a target price of Rs 170.