Goldman Sachs expects FY25 to be one of the weakest years for cement sector profitability in recent times, with FY26 only marginally better. The firm highlights that consolidation of market share, capacity, and resources will continue to sustain premium valuations for larger players, making them a safer bet in the current challenging environment.
Ratings Breakdown:
- Buy: Ultratech Cement
- Neutral: Shree Cement, Dalmia Bharat, Ambuja Cements
- Sell: ACC
The firm underscores that industry leaders like Ultratech are better positioned to weather the downturn due to their strong capacity pipeline and market consolidation efforts. On the other hand, companies like ACC are expected to face continued headwinds owing to weaker operational performance and cost pressures.
