Cement stocks: JM Financial’s top pick UltraTech Cement; targets for ACC, Ambuja & others

Brokerage JM Financial said channel checks showed pan-India average cement prices ticked up by 1.5-2% MoM to hover around Rs 340 per bag. The brokerage remains positive on the sector’s near-term prospects, and their top sector stock pick remains UltraTech Cement.

“On a 4QFY26-to-date basis, pan-India prices haver risen ~1% QoQ (GST rate cut adjusted), led by broad-based price hikes across regions. Industry demand is estimated to have grown at close to low double-digit YoY in Jan’26, extending the momentum of previous month,” JM Financial said.

The brokerage expects this demand momentum to be sustained for the next three to four months. With government infrastructure thrust and housing projects firing up, the industry is eyeing a compound growth of 6-7% over the medium term, it said.

JM Financial projects that EBITDA per tonne could expand by Rs 250 per tonne in 4QFY26E.

Here are the target prices and ratings as per the brokerage’s latest report:

UltraTech Cement: The top pick gets a ‘Buy’ rating with a target price of Rs 14,500.

Ambuja Cements: Rated ‘Buy’ with a target price of Rs 635.

Shree Cement: Rated ‘Add’ with a target price of Rs 30,200.

Dalmia Bharat: Rated ‘Add’ with a target price of Rs 2,460.

ACC: The brokerage recommended ‘Reduce’ rating, setting a target price of Rs 1,760.

Ramco Cements: Also has a ‘Reduce’ call, with a target price of Rs 1,010.

JK Cement: Rated ‘Add’ with a target price of Rs 6,550.

Birla Corporation: Rated ‘Add’ with a target price of Rs 1,185.

Star Cement: Rated ‘Buy’ with a target price of Rs 290.

JSW Cement: Rated ‘Buy’ with a target price of Rs 165.