UltraTech, Ambuja, Dalmia: Is It the Right Time to Buy These Cement Stocks?

Synopsis: BofA is positive on India’s cement sector, citing proactive pricing, cost management, and long-term fundamentals as key drivers. Despite rising input costs and geopolitical tensions, leading players like Ambuja Cement, UltraTech Cement, and Dalmia Bharat are expected to maintain earnings growth. 

Bank of America underscores rising input costs and geopolitical tensions as key challenges for the cement sector, highlighting pricing actions as the main lever to safeguard margins in the near term. 

In line with this view, leading Indian cement stocks such as Ambuja Cement, UltraTech Cement, and Dalmia Bharat have retained Buy ratings, reflecting expectations that proactive pricing strategies, cost management, and long-term fundamentals will support earnings growth despite near-term headwinds.

Reason for  the Target

The companies is facing rising operational costs due to global supply chain pressures and geopolitical tensions. These cost pressures are impacting margins and prompting a closer evaluation of production efficiency, procurement strategies, and cost optimisation initiatives to maintain financial stability in a challenging environment.

The Management is prioritising price adjustments to offset rising costs. Strategic price hikes are being considered to protect margins without significantly affecting demand. These actions are seen as crucial to sustaining profitability while navigating external cost pressures and maintaining competitive positioning in the market.

While fourth-quarter results will provide a snapshot of recent performance, stakeholders are advised to look beyond these numbers. Upcoming headwinds, particularly from rising costs and volatile global markets, could influence future profitability more significantly than quarterly fluctuations, emphasising a long-term strategic view.

Projected cost increases are estimated at Rs 200-250/MT, largely driven by the ongoing Middle East conflict affecting raw material and energy prices. This cost pressure highlights the need for proactive financial planning, careful budgeting, and timely operational adjustments to mitigate margin erosion.

A price increase is expected to be the key near-term driver for margin protection. By aligning pricing strategy with cost pressures, the company can maintain profitability. Market acceptance and competitive dynamics will determine the effectiveness, making this a critical lever for navigating short-term headwinds.

Here are list of stocks to watch out for

Ambuja Cements Ltd is one of India’s leading cement manufacturing companies, known for its strong focus on sustainable building solutions and infrastructure development. Established in 1983, it operates multiple cement plants and grinding units across the country, producing a wide range of cement products for construction and industrial use. The company emphasises eco-friendly practices, energy efficiency, and community development, making it a significant player in India’s construction sector.

BofA Securities has maintained its buy rating for Ambuja Cements and revised the target price to Rs 590 from Rs 620, implying a potential upside of 40.5 percent from the current market price of Rs. 441.05.

The company’s revenue rose by 9.19 percent from Rs. 9,411 crores in December 2024 to Rs. 10,277 crores in December 2025. Meanwhile, Net profit declined from Rs. 2,663 crore to Rs. 367 crores in the same period.

UltraTech Cement Ltd is India’s largest cement company and a leading player in the global cement industry. It is part of the Aditya Birla Group and produces a wide range of cement products for infrastructure, commercial, and residential projects. The company operates multiple integrated plants, grinding units, and terminals across India and abroad, focusing on sustainable practices, energy efficiency, and innovation in construction materials.

BofA Securities has maintained its buy rating for UltraTech Cement and revised the target price to Rs 13400 from Rs 14000, implying a potential upside of 21.7 percent from the current market price of Rs. 11499.90.

The company’s revenue rose by 22.78 percent from Rs. 17,779 crores in December 2024 to Rs. 21,830 crores in December 2025. Meanwhile, Net profit rose from Rs. 1,363 crore to Rs. 1,729 crores in the same period.

Dalmia Bharat Ltd is a prominent Indian cement manufacturer and a key player in the building materials sector. Part of the Dalmia Group, the company produces a wide range of cement products catering to infrastructure, commercial, and residential construction. With several integrated plants and grinding units across India, Dalmia Bharat emphasises sustainability, energy efficiency, and innovative solutions in construction.

BofA Securities has maintained its buy rating for Dalmia Bharat and revised the target price to Rs 2,300 from Rs 2,500, implying a potential upside of 28.3 percent from the current market price of Rs. 1947.95.

The company’s revenue rose by 10.22 percent from Rs. 3,181 crores in December 2024 to Rs. 3,506 crores in December 2025. Meanwhile, Net profit rose from Rs. 66 crore to Rs. 128 crore in the same period.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post UltraTech, Ambuja, Dalmia: Is It the Right Time to Buy These Cement Stocks? appeared first on Trade Brains.