Best Cement Stocks in India

As India continues to experience rapid urbanisation and infrastructure development, the cement industry remains a cornerstone of the nation's economic growth. With the government's emphasis on building smart cities, enhancing transportation networks, and promoting affordable housing, the demand for cement is projected to rise significantly. For investors looking to capitalise on this growth, identifying the best cement stocks in India is crucial. This article provides an in-depth analysis of the cement industry, highlights top-performing companies, and offers insights into the prospects of the best cement stocks in India.​

Cement Industry Overview

The best cement stock is the second-largest globally, contributing substantially to the country's GDP and employment. Over the past decade, the sector has witnessed steady growth, driven by increased infrastructure projects and a booming real estate market. According to an ICRA report, cement demand is expected to grow by 6-7% in 2025-26. ​

Government initiatives, such as the "Housing for All" mission and the development of industrial corridors, have further bolstered the industry's expansion. Additionally, the emphasis on sustainable and green construction practices has led to the adoption of alternative raw materials and energy-efficient technologies in cement production. ​

Top Cement Stocks in India (2025) by Market Capitalisation

Investors seeking exposure to the cement sector should consider companies with strong market positions and robust financials. As of April 2025, the leading cement stocks in India by market capitalisation are:​

Note: Market capitalisations are approximate and based on March 2025 data. Market capitalisation equals the number of free float shares* current market price of the stock

Overview of Best Cement Stocks in India

• UltraTech Cement Ltd.

UltraTech Cement, established in 2000, is India's largest cement producer and ranks third globally. With a manufacturing capacity of 114 million tonnes per annum, the company has a significant presence across the country. UltraTech is focusing on green power, aiming to increase its share to 36% by 2025 from 18%. ​

The company is actively expanding its capacity and investing in sustainable technologies to meet the growing demand for eco-friendly construction materials. UltraTech's commitment to innovation and sustainability positions it favourably for future growth.​

• Ambuja Cements Ltd.

Founded in 1983, Ambuja Cements is a part of the Adani Group and operates six manufacturing plants and eight grinding units across India. The company produces 31 million tonnes per annum and plans to double its manufacturing capacity by 2028 through brownfield projects and de-bottlenecking. ​

Ambuja's strategic expansion initiatives and focus on operational efficiency are expected to enhance its market share and profitability in the coming years.​

• Shree Cement Ltd.

Established in 1979, Shree Cement has grown to become one of India's top cement manufacturers. The company is known for its efficient operations and strong focus on sustainability. Shree Cement has consistently invested in capacity expansion and renewable energy projects to reduce its carbon footprint.​

With a robust distribution network and a commitment to green initiatives, Shree Cement is well-positioned to capitalise on the increasing demand for sustainable building materials.​

• ACC Ltd.

ACC Ltd., incorporated in 1936, is one of India's oldest cement companies. It operates 17 cement factories and over 75 ready-mix concrete plants across the country. ACC has a strong emphasis on research and development, leading to the introduction of innovative products and solutions in the market.​

The company's ongoing projects focus on capacity enhancement and adopting cleaner technologies, aligning with the industry's shift towards sustainability.​

• Dalmia Bharat Ltd.

Dalmia Bharat, founded in 1939, has a significant presence in the southern and eastern regions of India. The company is expanding its cement grinding capacity to 49.5 million tonnes per annum by FY 2025, up from the current 44.6 million tonnes per annum. ​

Dalmia Bharat's growth strategy includes cost optimisation and leveraging government initiatives focused on infrastructure and affordable housing, positioning it for sustained growth.​

Benefits of Investing in Cement Stocks in India

Investing in cement stocks offers several advantages:

• Infrastructure Growth: The Indian government's focus on infrastructure development, including smart cities and transportation projects, drives cement demand.​

• Housing Demand: Initiatives like "Housing for All" boost residential construction, increasing cement consumption.​

• Sustainability Trends: Companies adopting green technologies and sustainable practices are likely to benefit from regulatory support and consumer preference.​

• Economic Indicators: A growing economy with rising urbanisation leads to increased construction activities, positively impacting cement demand.​

Factors to Consider Before Investing in Top Cement Stocks

While the cement sector presents growth opportunities, investors should consider:

• Raw Material Costs: Fluctuations in the prices of limestone, coal, and other inputs can affect profitability.​

• Regulatory Environment: Changes in environmental regulations and policies can impact operations and expansion plans.​

• Geographical Presence: Companies with a diversified regional presence are better positioned to withstand localised demand fluctuations and logistical challenges.

• Capacity Expansion Plans: Evaluate whether a company is actively increasing its production capacity through brownfield or greenfield projects. This signals confidence in future demand and long-term growth strategy.

• Financial Health: Review debt levels, profit margins, return on capital employed (ROCE), and earnings growth. Strong financials ensure a company can weather economic downturns and invest in future opportunities.

Sustainability Initiatives: As environmental regulations tighten, companies investing in eco-friendly production methods (such as alternative fuels and renewable energy) will likely have a competitive edge.

Future Outlook for Cement Stocks in India

The best cement stocks in India are poised to benefit from the country's rapid urbanisation, ambitious infrastructure targets, and evolving real estate market. UltraTech Cement, Ambuja Cements, Shree Cement, ACC, and Dalmia Bharat are among the top cement stocks in India due to their strong fundamentals, market leadership, and forward-looking strategies.

However, while the best cement stocks present an attractive investment opportunity, prudent stock selection based on capacity, financial health, and sustainability initiatives is essential. With careful evaluation, investors can participate in India’s infrastructure-led growth story and potentially generate long-term returns.