Cement Stocks Hit 52-Week Highs Amid Strong Sector Outlook Despite Market Weakness

Shares of top cement companies, including UltraTech, Ramco, Dalmia Bharat, and JK Lakshmi Cement, surged to 52-week highs on Wednesday, bucking the broader market downtrend. This rally comes amid a promising demand outlook for the cement sector in FY 2025-26, driven by infrastructure and rural housing growth.

UltraTech Cement hit an all-time high of ₹12,532.15, climbing 3% in intra-day trade, surpassing its previous peak of ₹12,341 recorded in April 2025. JK Lakshmi Cement jumped 4% to ₹995, nearing its multi-year high of ₹998.40. Ramco Cement (₹1,101.10) and Dalmia Bharat (₹2,244.40) also gained over 2%, trading at fresh 52-week highs. This surge came even as the BSE Sensex dipped 0.53% to 83,265 by 1:40 PM.

In the past month alone, UltraTech and JK Lakshmi have soared 11% and 18%, respectively—significantly outperforming the Sensex’s 2.3% rise.

JK Cement’s FY25 annual report projects a 6-7% rebound in cement demand growth in FY26, led by strong momentum in infrastructure and rural housing. Cement demand had slowed to 4-5% in FY25 due to a high base and disruptions from an extended heatwave and election-related labour shortages. This followed a robust 11% CAGR growth between FY2022-24.

ICICI Securities forecasts cement demand to grow at a 7% CAGR from FY25-30, outpacing supply growth pegged at 6%. This imbalance is expected to improve capacity utilisation and support price increases.

Infrastructure’s share in cement consumption has nearly tripled over the last decade—from 11-13% in FY13 to 29-31% in FY24—and could rise to 32-34% by FY29. Housing’s share, while still dominant, is expected to shrink to 53-58%, as industrial and infra-led demand picks up pace.

With higher central and state capital spending on roads, railways, metros, airports, and irrigation, the cement sector is poised for sustained growth—boosting investor confidence even in a weak market.