Cement stocks on a roll: Shree Cement, JK Cement, Dalmia Bharat hit 52-week highs on healthy outlook

Strong Q4 results and a brighter FY26 outlook push shares of cement players

Cement stocks were in focus on May 15, showing strong gains in an otherwise weak stock market. The rally was driven by solid performance in the March quarter and optimism about growing cement demand in financial year 2026. Shares of ACC, Ambuja Cement, Shree Cement, JK Cement, and Dalmia Bharat rose by up to 4 percent during the day.

Individually, shares of Shree Cement, JK Cement, and Dalmia Bharat also touched their respective 52-week highs on the BSE in intra-day trade.

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Cement companies that have released their March 2025 quarter (Q4FY25) results so far have shown strong operational growth compared to the previous quarter.

Shree Cement posted a 46 percent quarter-on-quarter (QoQ) jump in earnings before interest, taxes, depreciation and amortisation (Ebitda), driven by improved pricing and operational efficiency. The company also reported its highest-ever quarterly cement and clinker sales volume at 9.84 million tonnes.

Last week, Birla Corporation reported a sharp 13 percent year-on-year (YoY) and 115 percent QoQ increase in Ebitda to Rs 540 crore. This was supported by better-than-expected volume, pricing, and increased incentive income. JM Financial raised its target price for the stock from Rs 1,460 to Rs 1,600 while keeping a 'Buy' rating. Axis Securities also maintained its ‘Buy’ call and revised the target price to Rs 1,560 from Rs 1,340.

Global brokerage UBS had earlier turned positive on the cement sector and expects an earnings upcycle in FY26. As a result, it upgraded stocks such as UltraTech Cement, Ambuja Cements, and Dalmia Bharat.

UBS pointed to a pickup in demand, driven by a housing recovery and increased government capital expenditure, as key reasons for a potential re-rating of cement stocks. The brokerage also noted that prices appear to be stabilising after falling by 8 percent during the first nine months of FY25.

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