HSBC upbeat on India's cement sector; UltraTech top pick

Ultratech Cement

16/09/2025 07:13

** Recent major deals in the Indian cement sector has accelerated the pace of consolidation and will likely drive prices, analysts at HSBC says

** HSBC says top four firms in the sector - UltraTech ULTC.NS, Ambuja Cements ABUJ.NS, Dalmia Bharat DALB.NS, Shree Cement SHCM.NS - now have combined market share of 57%

** Says, top four will likely dominate capacity additions in FY26, which will peak in the fiscal

** Expects demand recovery in the sector from the second half of FY26 as government spending will likely boost annual demand growth; sees rise in prices from November onwards

** UltraTech remains HSBC's top pick with "buy" rating, upgrades rating on ABUJ to "buy" from "hold," citing cost saving measures and improved capacity at acquired plants

** Adds, DALB (rated "buy" ) to benefit from improved pricing in the South and East regions of the country; SHCM is rated "hold"

** On the day, ULTC and ABUJ up 0.6% and 0.9%, respectively; while DALB and SHCM 0.6% and 0.9%

 (Reporting by Manvi Pant in Bengaluru)

 ((Manvi.Pant@thomsonreuters.com; +918447554364;))