India is the world’s second-largest producer of cement, accounting for around 8% of the world’s overall production. Strongholds in this industry that significantly boost GDP and employment are UltraTech Cement, ACC, and Ambuja Cements. Their performance is a reflection of housing projects and government infrastructure investments, as well as market trends.
In this blog, we’ll get into the details of the 10 best cement stocks to buy in 2025, industry overview, and the pros of investing in these stocks.
What are Cement Stocks?
Cement stocks are shares of companies primarily involved in producing and distributing cement, a building material necessary for constructing houses, businesses, and infrastructure.
These companies give investors an insight into the performance of the cement business, which is strongly correlated with urbanisation, economic expansion, and building activity.
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Top 10 Cement Stocks to Invest in 2025
Here is a comprehensive compilation of the most promising cement stocks to invest in 2025.
- UltraTech Cement Ltd
- Grasim Industries Ltd
- Ambuja Cements Ltd
- Shree Cement Ltd
- J K Cement Ltd
- Dalmia Bharat Ltd
- ACC Ltd
- The Ramco Cements Ltd
- Nuvoco Vistas Corporation Ltd
- Birla Corporation Ltd
Overview of Best Cement Stocks to Invest in India
1. UltraTech Cement Ltd
UltraTech, a global cement giant, holds the top spot as India’s largest grey cement, RMC, and white cement manufacturer, with a capacity of 154.86 MTPA. Its strategic acquisitions, robust RMC presence, debt reduction focus, and expansive growth plans reinforce its leadership in the industry.
2. Grasim Industries Ltd
The Aditya Birla Group’s flagship, Grasim Industries, thrives in cement leadership with boasting 119+ MTPA capacity. Beyond cement, it diversifies into viscose, yarn, chemicals, and textiles. Headquartered in Mumbai, Grasim operates in the cement and financial sectors through its subsidiaries, UltraTech Cement and Aditya Birla Capital.
3. Ambuja Cements Ltd
Ambuja Cements, once Gujarat Ambuja Cements Ltd, is a prominent player in India’s cement sector, now under the Adani Group. With over 100 MTPA capacity, it leads with efficiency and infrastructure, poised for growth in post-pandemic demand.
4. Shree Cement Ltd
Shree Cement, India’s top three cement player since 1979, has an installed capacity of 46.9 MTPA. Despite challenges, strategic efficiency and sustainability maintain northern market leadership, anticipating improved margins.
5. J K Cement Ltd
JK Cement is well-known for its strong brand recognition and superior goods in home and foreign markets. It has an installed capacity of 24.34 MTPA for grey cement and 1.12 MTPA capacity for white cement. In the cement sector, the company is praised for its inventiveness and environmentally friendly methods.
6. Dalmia Bharat Ltd
Dalmia Bharat, a prominent Indian cement manufacturer, stands out for its sustainable practices and innovative products. As the fourth-largest cement producer, it has a production capacity of 49.5 MTPA. Its robust cement business spans diverse regions, vital in advancing the nation’s infrastructure growth.
7. ACC Ltd
ACC Limited, part of the Adani group, operates 20 cement plants and 8 captive power plants, having achieved a sales volume of 42.2 million tonnes in FY25. It also operates more than 86 ready-mix concrete plants and has a wide distribution network to sell its products.
8. The Ramco Cements Ltd
Ramco Cements, a notable cement company, is acknowledged for its dedication to quality and efficiency. It has an annual production capacity of 24 million tonnes and has a strong distribution network with over 10,000 dealers and 30,000 stores.
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9. Nuvoco Vistas Corporation Ltd
India’s fifth-largest cement company, Nuvoco Vistas Corporation, has an annual production capacity of 31 MMTPA. It operates in three business segments: cement, ready-mix concrete, and building materials. It has 13 cement manufacturing plants, with brands like Concreto, DoubleBull, and Nirmax.
10. Birla Corporation Ltd
Birla Corporation Limited, part of the M.P. Birla Group, operates in Cement, Jute, and other segments. Specialising in cement and clinker manufacturing, its products, like MP Birla Cement and jute items, contribute to diverse industries.
Latest Performance of Top 10 Cement Stocks
Here is the performance of the top 10 cement stocks for 2025, including their past returns and ratios:
*(Data as on June 6, 2025)
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Overview of the Cement Stocks in Indian Market
India ranks in the second position in the cement production in the world with an installed capacity of 553 MTPA as of April 2024. The Indian cement sector, influenced by the construction industry, exhibits cyclical patterns and vulnerability to economic downturns.
Despite this, sustained growth stems from rising infrastructure demand and urbanisation. The industry’s fragmentation, featuring small to mid-sized companies and large multinationals, exposes investors to a pivotal economic sector.
Advantages and Risks Associated with Investing in Cement Stocks
Significant advantages of investing in cement stocks include:
- Consistent Demand: Because of its ongoing need, cement provides a reliable source of income for businesses.
- Infrastructure Expansion: The surge in infrastructure projects anticipates sustained growth for cement firms.
- Dividend Attraction: Cement companies often present alluring dividend yields, appealing to income-oriented investors.
- Portfolio Diversification: Including cement stocks in a portfolio provides diversification, lowering overall investment risk.
Increased infrastructure spending and real estate momentum boost cement demand. However, escalating energy costs pose short-term risks. Any delays in capacity expansion or fears of another COVID-19 wave present significant challenges for cement companies.
Why Should You Invest in Cement Stocks in India?
Investing in Indian cement stocks provides a strategic entry into a critical market essential for the nation’s infrastructure progress. As the world’s second-largest cement producer and third-largest consumer, cement equities are appealing, reflecting the industry’s resilience, continuous demand, and government emphasis on infrastructure development.
How to Start Investing in Cement Stocks?
SMC Global Securities, your dedicated companion for navigating the complexities of the financial world, turns your investment journey into a rewarding experience in the cement stocks sector.
Here are three easy steps to start investing in cement stocks :
- Go to the SMC Global Securities website or simply download the SMC ACE App.
- Open a free demat account
- Start investing
Conclusion
Cement stocks, including industry leaders like UltraTech Cement and Ambuja Cement, offer investors a promising avenue for sustained returns, given the sector’s consistent demand, dividend attractiveness, and potential for portfolio diversification.
The industry’s long-term prospects remain optimistic despite short-term challenges like rising energy costs and pandemic-related uncertainties. As one of the pivotal sectors influencing the nation’s GDP, investing in cement stocks aligns with the broader narrative of India’s economic development.
Author: All Content is verified by SMC Global Securities.
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