A Rough Patch for Cement Stocks
India’s cement sector has faced tough times recently. Demand slowed in FY2025, and competition heated up after the Adani Group entered the market. But now, global investment bank UBS believes a turnaround is coming—and it’s upgrading key stocks in anticipation.
Big Upgrades: Who’s in the Spotlight?
UBS has made some major changes to its ratings:
- UltraTech Cement – Upgraded to “Buy” (from “Neutral”), with a huge price target jump from ₹9,000 to ₹13,000.
- Ambuja Cements & Dalmia Bharat – Both moved from “Sell” to “Buy”.
- ACC – Kept at “Buy”, reinforcing confidence.
Why the Sudden Optimism?
UBS predicts a demand surge in FY2026, driven by:
- Post-election government spending on infrastructure
- A housing boom as real estate picks up
- Better rural incomes boosting construction
- Continued policy support
The bank forecasts 18% to 43% profit growth for these companies between FY2025-27.
Also Read: Grant Thornton Investigates IndusInd Bank Over $175M Overvaluation
Big Players vs. Rising Competition
Adani’s entry shook up the sector, but UBS believes big players like UltraTech, ACC, and Ambuja will stay ahead. Smaller firms may struggle, but the giants are expected to thrive as the market consolidates.
Stocks Have Struggled in 2025… So Far
Despite UBS’s bullish outlook, cement stocks have had a rough year:
- UltraTech Cement ▼ 3.28%
- ACC ▼ 5.8%
- Ambuja Cements ▼ 3.1%
Meanwhile, the Nifty 50 has stayed flat.
The Bottom Line: Is the Worst Over?
Short-term challenges remain, but UBS’s upgrades suggest better days ahead. If demand picks up as predicted, cement stocks could be a smart bet for long-term investors.
Also Read: Private Sector Growth Slows in March—But Experts Say India’s Economy Still Strong
