Nomura has provided an updated outlook on the cement sector, maintaining Buy ratings on UltraTech Cement, Shree Cement, Ambuja Cements, and Ramco Cements. The brokerage has adopted a Neutral stance on Nuvoco Vistas and ACC, while issuing a Reduce rating for Dalmia Bharat.
Cement spreads for Q3FY25 have improved marginally, primarily due to lower fuel costs. A 60-to-90-day lagged spread analysis suggests potential expansion of up to ₹70 per tonne, offering a moderate cushion to profitability. While cement prices have remained flattish recently, the brokerage remains bullish on the long-term growth drivers, including infrastructure expansion and rising rural demand.
Despite near-term moderation in demand and pricing, Nomura believes the sector is positioned for robust growth in the long run, with UltraTech and Shree Cement standing out for their operational efficiency and market leadership.
