Global brokerage HSBC has upgraded ratings for Ambuja Cement and Shree Cement in India's cement sector. Dalmia Bharat's target price has been increased by 45%, while ACC's target price has seen a slight decrease. UltraTech Cement remains HSBC's top favorite, and investors are anticipating a rally in these stocks.
Cement Stocks to Buy: HSBC released a report on India's cement sector on September 16, 2025. In this report, Ambuja Cement's rating was upgraded from Hold to Buy, and its target price was raised from ₹490 to ₹700. Shree Cement's rating was changed from Reduce to Hold, and its target price was increased from ₹22,000 to ₹32,200. Dalmia Bharat's target price was revised from ₹2,000 to ₹2,900. For ACC, the rating remains Hold with a target price of ₹2,040, and UltraTech Cement's target price was increased from ₹12,100 to ₹15,410. HSBC noted that the cement sector remains b due to increasing market share of large players and rising debt among smaller players.
Rating Changes for Ambuja and Shree Cement
HSBC has upgraded Ambuja Cement's rating from Hold to 'Buy'. Concurrently, its target price has been increased from ₹490 to ₹700, representing an approximately 43% rise. Meanwhile, Shree Cement's rating has been revised from 'Reduce' to 'Hold', and its target price has been enhanced from ₹22,000 to ₹32,200 per share.
These changes indicate that the brokerage anticipates a significant upside potential in the shares of Ambuja and Shree Cement in the coming period.
Dalmia Bharat and ACC Shares
For Dalmia Bharat, HSBC has maintained its 'Buy' rating and increased the target price from ₹2,000 to ₹2,900. This suggests a potential rally of up to approximately 45% in Dalmia Bharat's shares.
HSBC has issued a 'Hold' rating for ACC Limited shares. However, the target price has been reduced from the previous ₹2,100 to ₹2,040. This adjustment implies that the immediate upside potential for ACC's shares is currently limited.
UltraTech Cement is HSBC's Favorite
The brokerage has designated UltraTech Cement as its top pick. The 'Buy' rating for this company has been maintained, and the target price has been raised from ₹12,100 to ₹15,410 per share. An upside potential of up to 24% is being observed in UltraTech's shares.
During afternoon trade, UltraTech Cement was trading up 0.6% at ₹12,505.
Upside Potential for Top Five Cement Stocks
According to the brokerage, the upside potential for the top five cement companies is as follows:
- Ambuja Cements: 22.7 percent
- Shree Cement: 9.9 percent
- Dalmia Bharat: 20.2 percent
- ACC: 9.7 percent
- UltraTech Cement: 24.1 percent
This data clearly indicates that investors are likely to see greater returns from UltraTech and Ambuja Cements.
Current Market Share Scenario
As per HSBC's report, Dalmia Bharat shares were trading 1.1% higher at ₹2,442.6. ACC shares were trading up 0.6% at ₹1,871.5. Investors showed active interest in these stocks during this period.
Consolidation in the Cement Industry
HSBC noted that the cement industry in India is undergoing rapid consolidation. The country's top-4 cement companies now hold a 57% share of the total cement market. Furthermore, rising debt among smaller players could provide pricing advantages to larger entities. This is expected to boost the margins and profitability of major players in the future.
