HSBC has said that increased consolidation in India’s cement sector, with the top four players now controlling 57% of market share, alongside higher leverage at smaller companies, is a positive for pricing stability. The brokerage added that FY26 is likely to mark the peak of capacity additions in the current cycle, which should further support the pricing environment going forward.
It retained UltraTech Cement (UTCEM) as its top pick, maintaining a buy rating and raising its target price to ₹15,410. It also upgraded Ambuja Cements to buy with a revised target of ₹700, up from ₹490 earlier, citing improved growth visibility. Shree Cement was upgraded to hold with a target price of ₹32,200, while Dalmia Bharat remained on buy with a higher target of ₹2,900. ACC was maintained at hold with a target price of ₹2,040.
HSBC said sector consolidation, alongside structural demand drivers such as infrastructure spending and housing growth, should provide the leading players with a strong platform for sustained earnings growth.
Disclaimer: The views and recommendations made in this article are those of HSBC. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
