India is the second largest cement-producing country in the world, after China. It is the third-largest country consuming cement. Real estate and the housing industry demand a 65% share of cement, followed by Industrial Development, Public Infrastructure, which are 10% and 25% respectively. The Pandemic forced many cement companies to manage their costs, due to which they are currently going through a structural change.
Low Operating costs and Strong pricing levels helped these companies overcome the crisis and jump back in FY21. Due to the Pandemic, many top cement companies reinstated their CAPEX plans which had been on hold. This proves that large cement players are regaining their confidence. Many medium-term companies reported an increase in raw material, fuel and power due to which they are facing cost-related issues. As an investor, it is the right time to invest in cement stocks.
3 months ago, the prices of cement fell drastically, but now the scenario has changed. Cement stockers are top gainers despite the fall in share markets. Coal and Pet Coke are required to manufacture good quality cement and in recent times, the prices of these raw materials soared high. However, in August 2022, Domestic and International pet coke prices have reduced. In the exporting countries, coal prices have also been reduced. Overall, the manufacturing cost of cement has reduced, which boosted the sentiment for cement stocks.
Why Invest in Cement Stock now?
Cement Stocks with a pan India presence are a really good option to invest considering the government of India being highly optimistic about the country’s infrastructure. Since the prices are mainly driven by demand and supply, look for pan-India companies or regional companies with power resources and captive raw materials. The cement industry is seasonal, and cement stocks are cyclical. The price of cement falls during monsoons due to less construction. Since the monsoon is almost over in India, the prices of cement stocks will rise. With festivals lined up, it will boost construction activity, increasing sales.
Which Cement Stocks to Invest in?
As per several surveys, the top 10 cement companies you can invest in are Ultra Tech Cement, Shree Cements, Ambuja Cement, ACC Cement, Ramco Cement, Dalmia, JK Cement, Birla Corp, Heidelberg and India Cements. Ultratech Cement Share Price is the highest, Rs 6,481. Shree Cement Share Price is Rs 23,317. Cement Stocks in India have a high-profit margin. The competition in this industry is also very high, which is why an investor must look for the best stock companies before investing. For now, Ultratech Cement Share Price is high, followed by Shree Cement Share Price.
The cement industry is a highly capital-intensive industry. The sector operates primarily on a fixed cost, and thus growth in volumes is very critical. Despite the ups and downs, cement as a raw material will always be in demand because it is a crucial element at construction sites. If you are looking for brokers to invest in cement stocks then Angel One broking guides investors with expert advice and helps them invest in the right company, to gain maximum interest. It is a one-stop solution to trade and invest in shares.