Priyanka Tiwari
Share
Cement demand in India presented a mixed picture in recent weeks, with notable strength in Southern states and Bihar, while other regions showed subdued performance. According to Motilal Oswal's latest channel checks, dealers anticipate a broader demand recovery beginning mid-April 2025, driven by increased labor availability and upcoming government-led infrastructure projects.
"Dealers expect demand should improve from mid-April 2025 in the rest of the country, supported by stronger labor availability and a steady demand from the real estate segment," the report noted.
April Sees Price Hikes Across Regions
Cement companies raised prices in April 2025, boosting average prices by:
Rs 40 per bag in the South
Rs 20 per bag in the East
Rs 8–15 per bag in the North, West, and Central regions
Motilal Oswal analysts stated these price increases are expected to improve cement spreads, potentially reaching a 17-month high in April. This could help offset recent margin pressures caused by falling prices in previous quarters.
Profitability Outlook for Q4FY25
Analysts forecast a sequential improvement in profitability for Q4FY25, supported by:
Sustained price hikes since December 2024
Improved operating leverage
Softer fuel prices
However, EBITDA per tonne may still decline on a year-on-year basis, as the recent price revisions haven’t fully compensated for past declines.
Stock Picks: Ultratech and JK Cement Favored
While maintaining a positive long-term view on the sector, analysts at Motilal Oswal recommend players with:
A well-diversified geographic presence
High capacity utilisation
Strong execution in capacity expansion
They highlighted Ultratech Cement as the top pick among large-cap stocks and JK Cement among midcaps.
Read More: Izmo Limited Shares Turn Multibagger with Stunning 12200 Percent Return for Long Term Investors
