HSBC starts cement stocks coverage; sees industry capacity additions peaking in FY27

Dalmia Bharat

27/03/2026 06:47

** HSBC initiates Nuvoco NUVO.NS, JK Lakshmi Cement JKLC.NS with "Buy" and "Hold", respectively

** Retains "Buy" on UltraTech Cement ULTC.NS, Dalmia Bharat DALB.NS, Ambuja Cements ABUJ.NS

** Revises estimate for capacity additions in cement industry; sees it peaking in FY27 instead of FY26

** Expects sharp rise in pet coke, thermal coal prices due to Iran war leading to price hikes in April and May, with EBITDA/t improving from H2 FY27

** Sees steady demand growth of 5%-7% over FY26-FY30, supported by infrastructure spending

** Retains ratings on ULTC on falling debt levels, DALB on improved pricing in East, ABUJ on profitability as new capacity stabilises

** Assigns "Hold" to JKLC on industry-leading growth offset by current valuation, North market dynamics, increasing debt

** Assigns "Buy" on NUVO on expectations for East market improving as capacity additions slow

 (Reporting by Mridula Kumar in Bengaluru)

 ((Mridula.Kumar@thomsonreuters.com;))