Sanghi Industries, Ramco Cements, Dalmia Bharat: These stocks in the cement industry have surged up to 62% this year 

Ahead of the general elections next year, the government’s infrastructure development push is creating growth opportunities for many sectors involved in this sector and those related to it. According to market experts, the cement sector has been a major beneficiary of the higher capital expenditure that will eventually lead to higher demand and better margins.  

Data available from ACE Equity shows 30 stocks out of 41 in the cement industry have delivered positive returns to investors this year. Sanghi Industries, which has jumped 62 per cent to Rs 113.5 apiece in 2023, is the biggest gainer in the sector this year. Here is how some other major cement stocks have performed in 2023. 

The Ramco Cements stock has surged 30 per cent this year to Rs 911.5 on September 29, from Rs 700 on December 30, 2022. It has a current market capitalisation of Rs 21,420 crore. It is followed by Dalmia Bharat, whose share price has jumped 29 per cent to Rs 2,405 from Rs 1,861 at the previous year’s end. The latest m-cap for the company stood at Rs 45,107 crore. 

Birla Corporation has gained 25 per cent to Rs 1,229.6 apiece from Rs 980 at the end of December 2022 and has a market valuation of Rs 9,469 crore. Ultratech Cement’s stocks have risen 19 per cent to Rs 8,257 and the firm has a market cap of Rs 2.38 lakh crore. Grasim Industries has surged 12 per cent this year to Rs 1,941 and has a market cap of Rs 1.28 lakh crore. Shree Cement has jumped 9 per cent to Rs 25,471 with an m-cap of Rs 91,904 crore. 

On the other hand, JK Lakshmi Cement, Ambuja Cements, and ACC Ltd have declined 22 per cent, 20 per cent and 18 per cent respectively this year till September 29, 2023.    

Gaurang Shah, Senior Vice President at Geojit Financial Services, said that the government’s spending on infrastructure, state-level spending on infrastructure, recovery in the real estate sector, and spending on capex by corporate India is favorable for construction materials, especially the cement sector. “We remain positive on the cement sector. Our view is that the consumption extent is likely to go up steadily over the next couple of quarters. We are also of the opinion that the input cost which was constant last financial year has eased off a little bit and profit margins should improve going forward from here on.” 

Commenting on select cement sector stocks, Shah added that prices of cement bags have also moved north a bit and they might rise further. “In the large-cap space we like ACC, UltraTech, Ambuja and Grasim. And in the mid-cap, we are positive on Ramco Cements, JK Lakshmi Cement, Dalmia Bharat, Birla Corp, and Shree Cement.”