In the spotlight: Cement stocks

In the spotlight: Cement stocks

by Tanushree Jaiswal Last Updated: Sep 07, 2023 - 05:09 pm 734 Views
Listen icon

The Indian cement sector has been growing steadily over the past few years and is expected to continue its growth trajectory in the foreseeable future.

The Indian government's flagship programs such as Smart Cities Mission, Bharatmala Pariyojana, Sagarmala and AMRUT, among others, have led to a surge in demand for cement in the country. As per the Union Budget 2022-23, a higher allocation for infrastructure– USD 26.74 billion in roads and USD 18.84 billion in railways is likely to boost demand for cement.

Latest developments 

Cement production in India increased by 12.1% in September 2022 compared to September 2021. In October 2022, UltraTech announced that it has been granted Environmental Product Declaration (EPD) certificates for four of its cement products. In May 2022, Adani Group acquired a 63.1% stake in Ambuja Cements Ltd along with related assets. Ambuja's local subsidiaries include ACC Ltd, which is also publicly traded.

Dalmia Cement plans to spend USD 1.35 billion to increase its installed cement capacity by 52% to 50MT/yr from 33MT/yr before FY2024. JK Cement Ltd signed a long-term strategic (MoU) with Punjab Renewable Energy Systems Private Limited. The MoU is part of JK Cement’s attempts to decarbonize its operations and significantly scale up the use of biomass-based and alternate fuels as replacements to fossil fuels, like coal, in its manufacturing operations.

Adoption of green technologies 

Furthermore, the government's push towards the adoption of green technologies in the cement sector is expected to provide a significant boost to the industry. The government has set an ambitious target of achieving 100% waste heat recovery and using 30% of blended cement by 2020. This move is expected to reduce the sector's carbon footprint and make it more sustainable.

Following are the companies with the highest net profit for FY22

Sr No. 

Company Name 

Net Profit (Cr.) 

Ultratech Cement Ltd. 

7332.56 

Shree Cement Ltd. 

2336.61 

Ambuja Cements Ltd. 

2237.34 

Dalmia Bharat Ltd. 

1168 

The Ramco Cements Ltd. 

892.85 

JK Cement Ltd. 

679.42 

ACC Ltd. 

635.49 

JK Lakshmi Cement Ltd. 

477.62 

Star Cement Ltd. 

246.78 

How do you rate this blog?

or

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Weekly Outlook on Copper - 01 December 2023

Copper prices saw a modest 0.33% gain, reaching 722 on Thursday, as worries about a slowdown in Chinese manufacturing loomed large. The November's NBS Manufacturing PMI slipped to 49.4, the second consecutive monthly decline, heightened concerns, emphasizing the need for additional government support to fortify China's economic growth. The NBS Non-Manufacturing PMI at 50.2, reflecting the 11th month of service sector expansion, hinted at a softer pace.

Swing Trading Stocks: Week of 04 December 2023

Swing Trading Stocks for the Week

Weekly Market Outlook for 04 December to 08 December

Our markets started the truncated week on a positive note and it rallied higher throughout the week. The first day of the December month infact witnessed a new record as the Nifty surpassed its previous high and ended in uncharted territory above 20250 with weekly gains of almost two and a half percent.