Cement sector stocks log solid gains; Nuvoco Vistas up 26% in 2 days

Looking beyond the Q1, analysts expect domestic cement demand to grow at a healthy 6-8 per cent CAGR over FY27-FY29, driven by sustained public infra investments and housing demand.

Cement, cement products share price movement

 

Shares of cement and cement product companies were in demand and rallied up to 17 per cent on the BSE in Wednesday’s intra-day trade amid heavy volumes on the back of positive medium- to long-term outlook. Analysts are upbeat on the cement sector owing to strong structural demand, industry consolidation, and ongoing investments in cost-efficient operations.

 

Among individual stocks, Nuvoco Vistas Corporation surged 17 per cent to ₹398.50 on the back of heavy volumes. The average trading volumes at the counter jumped nearly 20-fold, with a combined 41.14 million equity shares changing hands on the NSE and BSE.

 

In the past two trading days, the stock price of cement & cement products company zoomed 26 per cent after the company reported a 3.9 per cent year-on-year growth in consolidated volume for the April to June 2026 quarter (Q1FY27) at 5.3 million tonnes per annum (mtpa), largely in line with the analysts expectations.

 

Share price of Birla Corporation soared 8 per cent, followed by JK Lakshmi Cement (6 per cent), Dalmia Bharat (4 per cent), India Cements, UltraTech Cement, Heidelberg Cement India, JK Cement and Shree Cement (3 per cent each). In comparison, the BSE Sensex was up 0.50 per cent at 77,443 at 12:45 PM.

 

What’s driving Nuvoco Vistas’ stock price?

 

Nuvoco Vista’s earnings before interest, taxes, depreciation, and amortization (EBITDA)/ton improved by 5.4 per cent YoY to ₹1072/ton despite an increase in total cost (mainly power & fuel costs). Earnigns growth was supported by price hikes (~₹240/tonne QoQ), favourable geographic mix and focus on premium products.  Though management guides a cost increase of ₹100/ton in Q2FY27E (due to geo-political uncertainty and scheduled yearly shutdowns), analysts at ICICI Securities believe that overall operational performance for FY27E should remain better YoY despite cost pressure due to ongoing geo-political uncertainties. This would be mainly account of better realisations and positive operating leverage. Long-term outlook remains healthy led by focus on premiumization and cost optimization, the brokerage firm said in the Q1 result update.

 

With healthy volume growth and improvement in EBITDA/ton over FY27E28E, analysts expects revenue to grow 13 per cent compound annual growth rate (CAGR) over FY27-28E while EBITDA & profit after tax are expected to grow at 19 per cent & 52 per cent CAGR respectively. The brokerage firm maintains a 'Buy' rating on Nuvoco with a revised target price of ₹465 per share (based on 8x EV/EBITDA on FY28E).  Check Q1 Results Today 

Axis Securities view on cement sector

 

The Q1FY27 earnings season is expected to reflect healthy cement demand supported by sustained government infrastructure spending, resilient rural housing demand, and continued public capex execution.

 

However, elevated fuel and input costs are likely to keep profitability under pressure, making the sustainability of recent cement price hikes critical for margin recovery. Despite near-term earnings headwinds, the sector's medium- to long-term outlook remains positive, underpinned by strong structural demand, industry consolidation, and ongoing investments in cost-efficient operations, analysts at Axis Securities said in the Q1FY27 result preview.

 

The demand environment continues to remain favourable entering Q1FY27. Government-led infrastructure spending, ongoing execution of roads, railways, metro projects, urban infrastructure and industrial capex continue to provide a strong base for cement demand. Rural housing demand has also remained healthy, led by improving agricultural income and stable rural wage growth.

 

Looking beyond the Q1 quarter, analysts continue to expect domestic cement demand to grow at a healthy 6–8 per cent CAGR over FY27–FY29, driven by sustained public infrastructure investments, increasing urbanisation, housing demand and industrial expansion.

 

Cement demand in FY27 is expected to register around 7–8 per cent growth, driven by continued government focus on infrastructure development and steady momentum in the housing segment. The sustained public capex push is likely to remain a key driver of demand in the near term. During the quarter, non-trade demand continues to witness an uptick, supported by improved affordability following the decline in cement prices post the GST rate rationalization, Axis Securities.  ==========================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.