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India is the second largest cement producer in the world, following China, and is also the third largest consumer of cement and cement products. Housing & Real Estate demands 65% share of cement, followed by Public Infrastructure which requires 25% and Industrial Development has 10% demand for cement. While the pandemic halted many construction projects, cement companies were forced to manage their costs. But since the lockdowns were lifted, many projects have resumed and thus demand is expected to grow. It is imperative that we grab the opportunity to invest in this sector and find the best c
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Introduction India is the second largest cement producer in the world, following China, and is also the third largest consumer of cement and cement products. Housing & Real Estate demands 65% share of cement, followed by Public Infrastructure which requires 25% and Industrial Development has 10% demand for cement. While the pandemic halted many construction projects, cement companies were forced to manage their costs. But since the lockdowns were lifted, many projects have resumed and thus demand is expected to grow. It is imperative that we grab the opportunity to invest in this sector and find the best cement stocks. Cement Industry is highly capital-intensive and has huge fixed costs. It must be evaluated regionally since demand may vary from region to region. Companies that can control fixed costs of logistics and power consumption are the ones with higher profit margins. Companies that have plants spread across the country can control costs related logistics better than their competitors. 02
Top 10 Cement Stocks in India Let us look at the cement stocks list to help us decide which ones to invest in for the long term. We will make our decision based on financial ratios since we use Fundamental Analysis for long term investment decisions. Net profit margin, 3 years CAGR net profit, return on equity, debt to equity ratio, earnings per share, price to earnings ratio, dividend per share, promoter’s shareholding, market capitalization, and change in revenue and net profit are the fundamental analysis parameters we will take into consideration to select best cement stocks for long term investments. 03
UltraTech Cement UltraTech Cement Ltd, founded in 2000, is one of the best cement stocks for long term. It is a part of Aditya Birla Group and is India’s largest exporter of Cement Clinker. The company manufactures and markets Portland Blast Furnace Slag Cement. Ordinary Portland Cement, Portland Pozzalana Cement, ready mix concrete (RMC), white cement and white cement-based products, industrial and precision grout, repair products, tiles adhesives, waterproofing products, plasters, masonry products, and light weight autoclaved aerated concrete block. UltraTech Cement has a market capitalization of ₹1,91,895 Cr and a P/E Ratio of 25.93. The Dividend/Share is ₹38 and the Promoter’s shareholding is 59.96%. The company’s revenue increased by 17.6% and net profit increased by 36.66% in the fiscal year ended 31st March, 2022. The 3 years CAGR Net Profit is 73.99%. 04
Shree Cements Shree Cements Ltd, founded in 1979, is a leading cement manufacturer in North India. The company’s cement manufacturing capacity is nearly 43.4 MTPA (million tons per annum). The products are marketed under the brand names: Bangur Power Cement, Bangur Cement, Roofon Concrete Master Cement, Rockstrong Cement, and Shree Jung Rodhak Cement. The company is also engaged in power generation. Shree Cements has a market capitalization of ₹77,296.51 Cr and a P/E Ratio of 37.18. The Dividend/Share is ₹90 and the Promoter’s shareholding is 62.55%. The company’s revenue increased by 11.4% and net profit increased by 2% in the fiscal year ended 31st March, 2022. The 3 years CAGR Net Profit is 51.72%. 05
Ambuja Cements Ambuja Cements Ltd., founded in 1983, is the third largest cement company in the country. It manufactures and markets cement and clinker in domestic markets as well as export markets. The company has a capacity of approximately 29.65 million tons. Ambuja Cement has five integrated cement manufacturing plants and eight cement grinding units across India. The product portfolio includes Ambuja Cement, Ambuja Plus, Ambuja Kawach, Ambuja Cool Walls, Ambuja Buildcem, Ambuja Compocem, Ambuja Railcem, Ambuja Powercem, and Alccofine. Ambuja Cements has a market capitalization of ₹83,486.45 Cr and a P/E Ratio of 35.24. The Dividend/Share is ₹6.30 and the Promoter’s shareholding is 63.2%. The company’s revenue increased by 18.15% and net profit increased by 19.34% in the fiscal year ended 31st March, 2022. The 3 years CAGR Net Profit is 11.66%. 06
ACC ACC Ltd., founded in 1936, is a cement manufacturing company. The company’s R&D facility is known for innovative research and product development. Their product range includes Ordinary Portland Cement (OPC), Portland Slag Cement (PSC), Portland Pozzalana Cement (PPC) and composite cement and ready-mix concrete. The company has 17 cement manufacturing plants and 85 plants of ready mix concrete. The company has extended its services to Africa, the Middle East, and South America and helps in operating and maintaining cement plants. ACC has a market capitalization of ₹44,146 Cr and a P/E Ratio of 19.72. The Dividend/Share is ₹58 and the Promoter’s shareholding is 54.53%. The company’s revenue increased by 17.16% and net profit increased by 30.26% as on 31st December, 2021. The 3 years CAGR Net Profit is 10.72%. 07
The Ramco Cements The Ramco Cements Ltd., founded in 1961, is based in Chennai was formerly known as Madras Cements Ltd. and is a part of the well-known Ramco Group of South India. It is the fifth largest cement producer in India. Portland Cement, the main product of the company, is manufactured in five production plants in Southern India. The production capacity is 13 MTPA. The company also produces Dry Mortar Products and Ready Mix Concrete. Ramco Cements has a market capitalization of ₹17,922,78 Cr and a P/E Ratio of 19.69. The Dividend/Share is ₹3 and the Promoter’s shareholding is 42.33%. The company’s revenue increased by 13.46% and net profit increased by 16.91% in the fiscal year ended 31st March, 2022. The 3 years CAGR Net Profit is 32.64%. Learn More 08
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