UltraTech Cement led a rally in cement stocks on Wednesday, with its shares rising 2.7% to Rs 12,057.50 on BSE, following price hikes implemented by cement dealers after months of stagnant margins.
The price hikes, which signal a recovery in demand, sparked gains across the sector, with Adani Group’s ACC and Ambuja Cements up 2% and 1.8%, respectively, and Dalmia Bharat climbing 3.4%.
The price hikes—ranging from Rs 10-30 per bag—reflect a 3.5% quarterly increase, according to Hong Kong-based brokerage CLSA. However, prices remain 5% lower than the same period last year.
Dealers attributed the increase to improved labor availability post-festive season and a surge in orders from real estate and infrastructure projects, buoying optimism for a sustained recovery.
Cement volumes, which were weak in October, began to recover in late November, with brokerage CLSA anticipating a 4% price hike in H2FY25, driven by stronger demand and cost efficiencies. The brokerage named UltraTech Cement as its top pick.
With the recent price hikes boosting sentiment, the cement industry’s recovery trajectory appears promising, with demand expected to strengthen further into FY26, CSLA noted.
