UltraTech, JK Lakshmi, Shree Cement, ACC rally up to 6% on positive outlook

Analysts at Elara Capital expect demand growth for the cement sector to rebound in FY26, driven by improved execution of government initiatives, such as the PMAY-G, and increased irrigation spending.

Cement companies share price today

 

Shares of cement companies JK Lakshmi Cement, Shree Cement, India Cement, ACC, Ambuja Cements, JK Cement and UltraTech Cement rallied up to 6 per cent on the BSE in Friday’s intra-day trade on expectations of growth recovering in cement sector in the current financial year 2025-26 (FY26).

 

UltraTech Cement was up 2 per cent at ₹12,134.90 in intra-day trade. The stock was quoting close to its 52-week high level of ₹12,341 touched on April 28, 2025. Thus far in the month of June 2025, UltraTech Cement has rallied 8 per cent.

 

Shares of JK Lakshmi Cement surged 6 per cent to ₹894 amid heavy volumes. In the past four trading days, the stock appreciated by 10 per cent. It had hit a 52-week high of ₹935 on June 27, 2024. 

 

Cement sector outlook

 

In the short term, the sector will likely face seasonal challenges due to monsoon related weakness, affecting demand and pricing. However, analysts at Elara Capital expect demand growth to rebound in FY26, driven by improved execution of government initiatives, such as the Pradhan Mantri Awaas Yojana - Gramin (PMAY-G), and increased irrigation spending.

 

Capacity addition will continue, keeping utilization range-bound. As the industry enters a lean season, profit margin may see a near-term peak in Q1FY26. Investors may consider reducing their positions after Q1FY26 results to avoid short-term underperformance, the brokerage firm said.

 

With the early onset of the monsoon, muted demand in the initial months, and anticipated volume push towards end-Q1FY26, cement prices are likely to come under pressure. Structurally, analysts said they are positive on firms with greater presence in North and North-East. UltraTech is well placed to gain market share due to its consistent strategy. 

 

Meanwhile, cement pricing momentum moderated in June 2025, with the all-India average price declining by ~1 per cent month-on-month (MoM). Further, due to sluggish demand trends since the beginning of 1QFY26, followed by regional challenges (heat wave, unseasonal rains, labor unavailability), analysts at Motilal Oswal Financial Services estimate industry demand growth to be in low to mid-single digits year-on-year (YoY) in Q1FY26, despite having a low base. The brokerage firm estimates that higher prices and cost-saving measures are likely to improve profitability in Q1FY26.

 

The brokerage firm maintains a positive outlook on the cement sector due to resilient pricing trends despite the early onset of the monsoon in major parts of the country, higher consolidation, and favorable fuel prices.