Ramco Cements Eyes Turnaround as Cement Cycle Shows Early Signs of Revival

After nearly a decade of stagnant cement prices and eroding margins, Ramco Cements may be on the brink of a long-awaited cyclical upswing, buoyed by sector-wide consolidation and early price recovery in the southern market.

Once plagued by chronic overcapacity, especially in South India, the cement industry has struggled with pricing discipline. Over the last 10 years, cement prices have grown at a meagre 1.7% CAGR—well below inflation. This has squeezed margins and stunted growth for manufacturers like Ramco Cements, which has historically been heavily exposed to the oversupplied southern region.

But the tide could be turning. Major players like Ultratech Cement and Ambuja Cement are spearheading consolidation, and signs of price stability are being seen in the industry early on. Experts feel this can be the start of a more disciplined price environment.

For Ramco Cements, the timing couldn’t be better. The stock is currently trading close to its previous high of ₹866—last seen in 2017—but valuations remain attractive. On both price-to-book and EV/EBITDA metrics, the company is trading near historical lows, suggesting significant upside potential if the cement cycle gains momentum.

Market watchers say Ramco stands out as a potential beneficiary of both demand revival and price corrections, given its entrenched presence in the South and ongoing operational improvements. A more rational pricing regime could directly boost its bottom line and investor sentiment.

While the turnaround isn’t guaranteed, especially in a still-fragile macro environment, the pieces are aligning for Ramco Cements to stage a comeback. If pricing recovery sustains, the company may finally break free from the constraints that have weighed it down for a decade.

As the sector inches toward consolidation-led stability, Ramco Cements could emerge as a dark horse in India’s cement rebound story.