The Cement Revolution: Top 5 Fastest-Growing Cement Stocks to Watch in 2025

Cement: The Backbone of Economic Progress

Cement is a cornerstone of infrastructure and economic development, providing the foundation for roads, bridges, buildings, and other critical projects. Its demand is closely linked to economic activity, and in India, the sector is on an upward trajectory fueled by government-led infrastructure investments and urbanization.

India is the world's second-largest cement producer, with 8% of global capacity, and its per capita consumption (250 kg) remains significantly below the global average (550 kg). This highlights immense room for growth as the nation accelerates infrastructure development.

However, identifying the right companies in this rapidly evolving industry is key to tapping into its vast potential. Here's a detailed look at the five fastest-growing cement stocks set to shape India's infrastructure landscape in 2025.

1. Shiva Cement: Rising with Strategic Support

A subsidiary of JSW Cement, Shiva Cement is a key supplier for JSWCL's grinding units in eastern India, boasting a 1.4 million tonnes per annum (MTPA) capacity in Odisha.

Key Highlights:

• Impressive Sales Growth: The company achieved a 130.1% CAGR over three years, driven by robust demand from JSWCL.

• Challenges: Operational halts and high depreciation costs have led to losses and a weak debt-to-equity (D/E) ratio of -9.5.

• Future Plans: A rights issue of ₹4 billion at ₹40 per share, alongside a ₹4.5 billion investment to develop a new grinding unit, aims to boost financial stability.

With strong parental support and a focus on operational efficiency, Shiva Cement is gradually strengthening its financial health.

2. Shree Cement: A Leader in Operational Excellence

One of India's top three cement producers, Shree Cement operates with a total capacity of 56.40 MTPA, primarily serving the domestic market.

Key Highlights:

• Steady Growth: Sales and profits grew at 15.3% and 18.7% CAGR, respectively, over three years, reaching ₹255.3 billion in FY24.

• Financial Strength: With a net cash surplus, minimal debt (₹9.9 billion), and a strong D/E ratio of 0.5, Shree Cement is well-capitalized for growth.

• Expansion Plans: The company plans to expand its RMC plant network and achieve 80 MTPA capacity by 2028.

Shree Cement's focus on cost efficiency, premiumization, and green power usage positions it as a sustainable growth leader.

3. Sagar Cement: Strengthening Regional Presence

With a 10.50 MTPA capacity, Sagar Cement is a dominant player in southern India, generating 70% of its revenue from this region.

Key Highlights:

• Expanding Horizons: A 22% sales CAGR over three years, supported by acquisitions and capacity expansions.

• Debt Challenges: High capex has pushed net debt to ₹14.4 billion, impacting return ratios.

• Future Plans: The company targets a 20 MTPA capacity through organic and inorganic growth, supported by increased cash flow and green power initiatives.

By expanding into eastern and central markets, Sagar Cement is diversifying its footprint for sustained growth.

4. The Ramco Cement: A Focus on Diversification

With a strong presence in South India and a 14.7 MTPA capacity, Ramco Cement is diversifying its operations across India.

Key Highlights:

• Revenue Growth: A 20.8% CAGR over three years to ₹67.4 billion in FY24, driven by new products and expanded markets.

• Profit Recovery: Profit rebounded in FY24, aided by cost optimization and reduced fuel expenses.

• Growth Plans: The company is investing ₹26 billion to enhance its capacity and reduce debt by selling non-core assets.

Ramco's focus on diversification, cost efficiency, and green energy initiatives makes it a promising player in the sector.

5. Saurashtra Cement: Expanding Beyond Gujarat

Based in Gujarat, Saurashtra Cement operates with a 1.5 MTPA capacity, heavily reliant on its home market.

Key Highlights:

• Sales Growth: Achieved a 37.9% CAGR in revenue over three years, despite rising costs.

• Expansion Efforts: Plans to grow its paint division to complement its cement business.

• Financial Stability: A healthy D/E ratio of 0.9, despite doubling debt to ₹0.10 billion.

With a strategic focus on diversification and cost management, Saurashtra Cement aims to strengthen its market presence.

Why Cement Stocks Are a Must-Watch in 2025

India's cement industry is set to grow at a CAGR of 4.7%, with demand projected to rise from 4 billion tonnes in 2023 to 6 billion tonnes by 2032. This growth will be driven by:

• Government Infrastructure Projects: Massive investments in housing, roads, and railways.

• Urbanization: Increasing demand for commercial and residential real estate.

• Technological Advancements: Enhanced operational efficiency and green initiatives.

The highlighted companies are well-equipped to capitalize on these trends through strategic expansions, cost optimization, and sustainable practices.

Investment Considerations

While the industry's growth prospects are robust, investors must carefully evaluate individual companies based on:

• Financial Health: Debt levels, profitability, and return ratios.

• Capacity Expansion Plans: Ability to scale operations efficiently.

• Cost Management: Effective strategies to mitigate rising input costs.

As with any investment, due diligence is key to navigating the highly competitive cement market.

In conclusion, The cement sector in India is poised for a transformative decade, driven by strong demand and strategic investments. Companies like Shiva Cement, Shree Cement, Sagar Cement, The Ramco Cement, and Saurashtra Cement are leading the charge with their growth-oriented strategies.

For investors seeking long-term value, these stocks offer significant potential. However, careful analysis of market conditions and company fundamentals is crucial to making informed decisions in this dynamic industry.