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Best Cement Stocks in January 2025: Grasim Industries, Ambuja and More – Based on 5-Yr CAGR

Updated on: Dec 29, 2024, 9:21 AM IST
Explore the best cement stocks in India for January 2025, led by Grasim Industries and Ambuja Cements, showing high 5-year CAGR growth rates.
Best Cement Stocks in January 2025: Grasim Industries, Ambuja and More – Based on 5-Yr CAGR
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India’s cement industry is set for continued growth, driven by the government’s focus on infrastructure development, including smart cities, highways, and housing initiatives. With significant investments in the Union Budget 2024-25, including ₹2.5 lakh crore for highway expansion and ₹1 lakh crore for rural housing, the demand for cement is expected to surge across the country.

As we head into 2025, let’s take a look at the best cement stocks to watch in January 2025, with a particular focus on those that have demonstrated impressive 5-year CAGR (Compound Annual Growth Rate) performance.

 

Top Cement Stocks in India in January 2025 – 5yr CAGR Basis

Name Market Cap (₹ Cr) ↓5Y CAGR PE Ratio
Grasim Industries Ltd 1,66,753.60 27.6 29.65
Ambuja Cements Ltd 1,35,176.22 23.11 37.79
UltraTech Cement Ltd 3,30,301.10 23.05 47.15
Star Cement Ltd 9,296.15 20.98 31.5
Dalmia Bharat Ltd 32,609.14 16.92 39.48
ACC Ltd 39,203.41 7.54 16.78
Ramco Cements Ltd 23,075.13 5.43 64.11
Shree Cement Ltd 95,046.43 5.31 39.67

Note: The best cement stocks list here is as of December 27, 2024. The stocks are sorted based on the 5Y CAGR. 

 

Overview of the Cement Stocks

1. Grasim Industries Ltd

Grasim Industries Limited is a holding company. Through its subsidiaries, UltraTech Cement, Aditya Birla Capital and Aditya Birla Renewables, it is also India’s prominent cement producer.

For the quarter ended September 2024, Grasim Industries reported a net profit of ₹390 crore, compared to ₹1,164 crore in the same period last year, reflecting a 66% decline. The company’s revenue from operations rose to ₹33,563 crore, marking an 11% increase compared to the same quarter in FY24.

Key metrics:

  • Earning per Share (EPS): ₹85.25
  • Return On Equity (ROE): 4.3%

 

2. Ambuja Cements Ltd

Ambuja Cements Ltd, a leading Indian cement company and a part of the Adani Group, is known for its sustainable development practices and environmentally friendly products. It focuses on reducing carbon footprints through innovative solutions and strong ESG initiatives.

For the quarter ending September 2024, Ambuja Cements reported a consolidated net profit of ₹456 crore, a 42.5% decrease from ₹793 crore in the same period last year. The company’s revenue for Q2 FY25 stood at ₹7,516 crore, reflecting a marginal 1.2% increase from ₹7,434 crore in Q2 FY24.

Key metrics:

  • EPS: ₹17.1
  • ROE: 7.98%

3. UltraTech Cement Ltd

UltraTech Cement Ltd, the flagship company of Aditya Birla Group, is the largest cement manufacturer in India and the third-largest globally. The company operates in multiple countries, including India, UAE, Bahrain, and Sri Lanka.

For the quarter ending September 2024, the company reported a net profit of ₹825 crore, against ₹1,695 crore in the previous quarter. The company’s total revenue for Q2 FY25 stood at ₹15,855 crore, down from ₹18,235 crore in the previous quarter.

Key metrics:

  • EPS: ₹242.65
  • ROE: 12.22%

 

4. Star Cement Ltd

Star Cement Ltd is a leading cement manufacturer in North East India, known for producing high-quality products like Star Weather Shield, Star PPC, and Star OPC Cement. 

For the quarter ending September 2024, Star Cement’s revenue for Q2 FY25 fell to ₹3,966.68 million from ₹4,807.94 million in Q1 FY25. The net loss increased to ₹-378.71 million, compared to ₹-131.33 million in the previous quarter, with EPS worsening from ₹-0.32 to ₹-0.94.

Key metrics:

  • EPS: ₹7.3
  • ROE: 11.51%

 

5. Dalmia Bharat Ltd

Dalmia Bharat Ltd, founded in 1939, is the fourth largest cement company in India, serving more than 23 states with a strong network of around 49,300 channel partners.

For the quarter ending September 2024, the company reported a net profit of ₹49 crore, reflecting a 60.2% decline compared to the corresponding period last year. Revenue from operations stood at ₹3,087 crore, marking a 2.1% decrease from the previous year’s corresponding quarter.

Key metrics:

  • EPS: ₹44.06
  • ROE: 5.12%

 

A Quick Overview of India’s Cement Industry

  • Booming Infrastructure

Government-backed initiatives such as smart cities, highways, and urbanisation continue to drive strong demand for cement.

  • Capacity Expansion

Cement companies are expanding production capacities to meet the increasing demand in both urban and rural regions.

  • Technological Advancements

The industry is incorporating modern technologies to enhance energy efficiency and minimise emissions.

  • Environmental Concerns

Growing environmental awareness is prompting companies to adopt sustainable practices, shaping the future of the sector.

 

Key Aspects to Evaluate Before Investing in Cement Stocks in India

  • Market Demand and Supply

 Assess the demand for cement in the context of infrastructure projects, urbanisation, and construction activities.

  • Government Policies

 Consider government initiatives, like housing schemes and infrastructure development, which directly impact the cement industry.

  • Company’s Financial Health

Review a company’s financial performance, profitability, debt levels, and market position in the cement sector.

  • Global and Domestic Economic Factors

Evaluate how global economic trends and domestic growth rates influence the cement industry’s performance.

 

Conclusion

Before investing in cement stocks, it’s crucial to assess each company’s financial stability, growth potential, and exposure to market volatility. Ensure your investment decisions align with your financial goals, and seek advice from a financial advisor to help navigate the complexities of this dynamic industry.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Dec 29, 2024, 9:21 AM IST

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