After the monsoon ends, construction activity is expected to pick up, giving a boost to cement makers across India.
Seasonal lift in cement demand
With the rainy season over, builders usually start more projects in the third and fourth quarters. This seasonal surge creates a strong demand backdrop for the cement sector.
Top picks: UltraTech and the Adani Cements group
Market expert Deven Choksey says the safest bets are the large, pan‑India players. He points to UltraTech Cement and the Adani Cements portfolio – which now includes ACC, Ambuja and Orient after recent consolidation – as the best positioned to benefit.
Why Ambuja stands out
Ambuja Cement, in particular, has an advantage because its plants are linked to major east‑west transport corridors and ports. This connectivity helps it move product more efficiently, making it a likely winner.
Investment case and potential upside
- Demand outlook remains upbeat despite uncertainty about immediate price hikes.
- Strong volume growth could offset stable pricing.
- Choksey projects a 15%‑20% upside for these stocks over the next 12‑15 months.
He suggests that adding these stocks to a portfolio could be a sensible move given the positive demand trends.
Disclaimer
Remember, this is just an opinion, not a prediction. Do your own research and consider your risk tolerance before investing.