Top 17 Cement Stocks to Buy in India 2025

An Introduction to Cement Stocks in India 2024

The cement industry is an important segment of the economy that investors often overlook in favour of other related sectors like infrastructure and transport. However, by identifying the best cement stocks and including them in your portfolio, you can leverage the growth prospects of India’s cement industry. 

IBEF estimates that the market size of this segment is expected to reach 5.99 billion tonnes by 2032. Naturally, the best cement stocks on the NSE and the BSE will also likely benefit from this projected growth. Samco Securities can help you identify the best cement stocks to buy in India for the long term.

If you are interested in long-term investments in cement stocks, check out this article to learn more about the best cement stocks to buy and how they compare with other companies in this segment. 

Top Cement Stocks in India 2024

Investing in some of the leading cement stocks in India could potentially offer stable returns and passive income in the form of dividends. Here is a list of the top cement stocks in the country. 

17 Best Cement Share In India 2024

• Ultratech Cement Ltd.

Established in 1983, Ultratech Cement Ltd. is India’s top cement stock with a consolidated capacity of 156.06 million tonnes per annum. The company commands an unassailable domestic market share of more than 80% with an extensive network of more than 1 lakh channel partners, making it one of the best cement stocks to buy in India for the long term.

Ultratech Cement’s sales and profit growth over the previous five years stood at 11.25% CAGR and 23.81% CAGR respectively, which is quite good among the leading cement stocks in India. The recent production capacity expansion and growing focus on sustainability are the key growth drivers for the company. Despite being the best cement share, the company faces challenges like fluctuating input costs and competition from emerging players, which could impact profitability and market position. 

• Ambuja Cements Ltd.

Among the top 10 cement stocks in India 2024, Ambuja Cements Ltd. was recently acquired by the Adani Group in 2022. To consolidate its position as a top cement stock, Ambuja Cements is strategically acquiring other cement manufacturers like Orient Cement and Penna Cement.  

The key drivers of growth include strategic acquisitions and expansion plans to increase production capacity to 140 million tonnes per annum by 2028. Among the NSE-listed cement companies, Ambuja Cements has the second-highest net worth of Rs. 36,576.63 crores and a debt-equity ratio of zero. Similar to the other leading cement stocks in India, the risks include the cyclical nature of the industry and input cost volatility. 

• Shree Cement Ltd.

Founded in 1979, Shree Cement Ltd. ranks third among the top 10 cement stocks in India 2024 in terms of capacity and market capitalisation. The company operates 12 integrated plants and 9 grinding units across India, with a total capacity of 50.9 million tonnes per annum. 

Shree Cement Ltd. has a strong operating profit margin (OPM) of 18.09% and a five-year profit growth of 18.74% CAGR, making it the best cement share to consider investing. A new clinker plant in Rajasthan and the commissioning of waste heat recovery systems could be the key growth drivers for the company. Some of the risks facing Shree Cement Ltd. include fluctuating input costs, regulatory changes, and competition from other major leading cement stocks in India.  

• ACC Ltd.

Established in 1936, ACC Ltd. is a subsidiary of one of the best cement stocks in India: Ambuja Cements. The company has around 19 modern cement factories and over 86 ready-mixed concrete plants, making it one of the top cement stocks in terms of production volume.

ACC Ltd. has a total market capitalisation of Rs. 42,930 crores and a net worth of Rs. 15,234. The primary drivers for the company’s growth and strong financial position include healthy operating efficiency and a strong market position in the Indian industry. Similar to other NSE-listed cement companies, the company faces risks like unfavourable input price cycles and a long gestation period for establishing new facilities.    

• Dalmia Bharat Ltd. 

Incorporated in 1939, Dalmia Bharat Ltd., with a capacity of over 37 million tonnes per annum, ranks fourth in the top 10 cement stocks in India 2024 in terms of production volume. The company’s growth is primarily driven by its strategic expansion plan, which includes reaching 75 million tonnes by fiscal 2027, making it one of the best cement stocks to buy in India for the long term. 

Dalmia Bharat Ltd. faces risks like moderate return on capital and a rise in input costs, in line with other top cement stocks. However, despite the various challenges, the company managed to clock a healthy OPM of 14.06% and a profit growth of 19.60% CAGR.  

Why Invest in Cement Stocks?

Now that you know more about some of the top 10 cement stocks in India 2024, let’s discuss the key reasons to consider adding the best cement shares to your portfolio. 

• Steady Growth in Demand 

Investing in BSE- and NSE-listed cement companies offers stability to your portfolio because of the consistent demand for construction materials for infrastructure and real estate projects. Government initiatives like affordable housing and urban development schemes also boost demand — making the best cement stocks in India attractive. This steady demand supports long-term investments in cement stocks if you are seeking reliable growth.

• Infrastructure Expansion

With our country’s massive infrastructure push, the leading cement stocks in India are well-positioned for growth. High spending on highways, railways and smart cities drives demand upward and directly benefits the top 10 cement stocks in India 2024 — which belong to companies that drive these projects. Since these projects require continuous cement supply, the best cement stocks may also enjoy sustained demand and revenue growth.

• Strong Profit Margins

Many of the best cement stocks to buy show solid profit margins due to economies of scale. Larger, NSE-listed cement companies also benefit from operational efficiency that allows them to withstand market fluctuations. If you seek steady income, you can even consider long-term investment in cement stocks with strong financials, as they may pay out dividends. These factors make the leading cement stocks in India highly attractive.

• Resilient in Economic Cycles

Cement is an essential product in economic development — irrespective of the prevailing economic growth cycle. This makes cement stocks on the NSE and the BSE resilient even during economic slowdowns. Infrastructure and construction projects continue during such downturns too, thus benefiting the best cement stocks to buy in India for the long term. This resilience adds some stability to your investments too.

• Dividend Potential

Many of the best cement stocks offer regular dividends, which can add to investor returns over time. Dividend-paying NSE-listed cement companies offer dual benefits: steady income and capital appreciation. For those eyeing long-term investment in cement stocks, dividend-paying leading cement stocks in India are attractive for both growth and income potential.

Factors to Consider Before Investing in Cement Stocks

Before you invest in the top cement stocks, you need to factor some key aspects into your strategy. These factors include:

• Regional Market Presence

When you are choosing the best cement stocks to buy, consider companies with a strong presence in regions with high construction activity. Leading cement stocks in India that dominate specific regions may have an advantage in meeting local demand efficiently. This can, in turn, boost revenue and market share over time.

• Demand Trends

Growing projects can mean better returns for the top cement stocks in the market. So, look at the demand in rural and urban areas to identify opportunities for long-term investments in cement stocks that align with regional needs. You should also assess the demand for cement in the infrastructure and real estate sectors. 

• Government Policies

Government infrastructure projects create a consistent demand for cement. The leading cement stocks in India directly benefit from this demand. To leverage this factor, look for cement stocks on the NSE and the BSE that are well-positioned to gain from government policies that support urban development and affordable housing.

• Financial Health

You should also evaluate the financial health of the top 10 cement stocks in India 2024 to ensure better risk management. Begin by checking the balance sheets, debt levels and earnings stability of different companies to identify the best cement stocks for long-term growth. Strong financials indicate a company’s ability to withstand market shifts better.

How to Evaluate the Performance of Cement Stocks?

To better assess the financial performance of companies in this sector and identify the best cement shares in the market, ensure you look into these aspects:

• Revenue Growth

Strong revenue growth can be a sign of stable demand and operational efficiency. So, choose top cement stocks with consistent revenue increases over time. This is especially true if you want to make long-term investments in cement stocks.

• Profit Margins

High profit margins can indicate cost efficiency and market strength. The best cement stocks generally have stable or growing margins, showing they can manage raw material costs effectively. This is crucial when you are picking BSE- or NSE-listed cement companies.

• Return on Equity (ROE)

ROE measures a company’s profitability and the effectiveness of its management. This means you should look for leading cement stocks in India with high ROE values — which reflect good use of equity. Strong ROE is often a hallmark of the top 10 cement stocks in India.

• Debt Levels

Low debt levels typically indicate financial stability and contribute to resilience during economic shifts. For a safe long-term investment in cement stocks, focus on the best cement stocks to buy with manageable debt-to-equity ratios.

Insights from Samco Securities can help you evaluate these factors and more. To obtain easy access to these analytical tools, all you need to do is open a demat and trading account with us and log into the Samco trading app. With live market insights and financial ratios available at your fingertips, finding the best cement stocks to buy in India is easier than ever before.

A Detailed Overview of Cement Stocks in India 2024

A Model Portfolio of Cement Stocks in India 2024

Planning to make a long-term investment in cement stocks? The model portfolio listed below could be a good starting point.