It has retained its “buy” rating on Ramco Cements with a price target of ₹905 apiece, which implies an upside of nearly 13% from its previous closing price.
DAM Capital has a “neutral” rating on Dalmia Bharat, Nuvoco and ACC, with price targets of ₹1,750, ₹320 and ₹2,010 apiece respectively.For its top picks, DAM Capital has a price target of ₹32,000 for Shree Cement, implying an upside potential of 16.3%, and ₹12,200 for UltraTech Cement, an upside of 16.7%, from last Thursday’s close.
The brokerage said two key trends are improving for the cement sector:
- There has been a demand uptick from December 2024, led by the revival of government capex, which the brokerage expects will sustain.
- Additionally, the industry is nearing the end of a massive consolidation period witnessed over financial year 2023-2025 due to the dearth of acquisition candidates.
DAM Capital said these trends should tone down competitive intensity, especially among UltraTech and Ambuja Cement and should drive mean reversion of sector profitability.Of the 42 analysts that have coverage on UltraTech Cement, 36 have a “buy” rating, three have a “hold” rating and three have a “sell” rating.
A total of 32 analysts have coverage on Shree Cement. Of them, 14 have a “buy” rating, 20 have a “hold” rating and eight have a “sell” rating.
Of the 43 analysts that have coverage on Ambuja Cements, 31 have a “buy” rating, eight have a “hold” rating and four have a “sell” rating.
The cement stocks gained up to 2% in trade on March 17, 2025. Ambuja Cements was up 0.68%, UltraTech Cement was up 0.47%, Shree Cement was trading 1.89% higher at 10 am.
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