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Top 5 Cement Stocks in India to invest in 2021 | Best Cement Companies to buy shares

TOP 5 BEST CEMENT STOCKS IN INDIA

Searching for the top stocks in Cement Sector that can give high returns in near future? We have listed down the top 5 stocks in the cement industry to buy in 2021 which may give you the same. The cement industry of India has grown substantially and India is currently the second-largest producer of Cement in the world after China.  Installed Capacity of quality Cement production in India was 545 million tonnes (MT) in FY2019-20. Of this, around 98% lies with the private sector.

Many government schemes like Housing for All, MGNREGA, Smart City, CVRP, AMRUT, and other housing, commercial and industrial construction, and roads construction have aided in the increased demand for cement which is expected to be 600 million tonnes per annum by the year 2025.

With COVID-19 hitting the country, raw material supply and consumer demand were impacted. Fuel prices hiked, the quantity of production and growth of Real estate was impacted.

A comprehensive study involving risks, returns, and other important factors are made for this article.

Here is a list of the Top 5 Cement Stocks in India where you can invest in. Keep in mind, these are not the stocks with the highest market capitalization, but the ones that may give you the highest returns in near future.

 Top 5 Cement Stocks in India

    

1)      Heidelberg Cements

Heidelberg Cement India Limited is a subsidiary of Heidelberg Cement Group, Germany. This company acquired Mysore Cements in 2007 which use to sell its product under the brand name diamond. After acquiring the company now sells under the brand name “Mycem” Cement.

The company has its plants at Damoh, Madhya Pradesh, Jhansi, Uttar Pradesh, Amasandra Karnataka. The total installed capacity of these plants is 5.4 million tonnes per anum.

The company has reported net sales of Rs. 2116 Cr. in FY 2020-21 against net sales of Rs. 2169 Cr. in FY 2019-20 despite the pandemic effect. Net profit of the company has increased from Rs. 268 Cr. in FY 2019-20 to Rs. 314 Cr. in FY 2020-21.

The Current Market Price of the stock is Rs. 265.50. The stock has given 50% returns in the last one year and 91% in the last three years. The stock is available in both NSE and BSE with its symbol “HEIDELBERG”

 

2)      Mangalam Cements

Mangalam Cements was established in the year 1978 and it use to sell its product under the Brand name “Birla Uttam”. The company has installed a capacity of producing 3.25 million tonnes of cement per annum.  The company has installed all its plant at Morak, Rajasthan. The company also has two Captive power plants each of 17.5 MW capacity.

The company has reported net sales of Rs. 1298 Cr. in FY 2020-21 against net sales of Rs. 1228 Cr. in FY 2019-20. Net profit of the company has increased from Rs. 75 Cr. in FY 2019-20 to Rs. 108 Cr. in FY 2020-21.  

The Current Market Price of the stock is Rs. 435.45. The stock has given 117% returns in the last one year and 129% in the last three years. The stock is available in both NSE and BSE with its symbol “MANGLMCEM”

 

3)      Sahyadri Industries Ltd.

Sahyadri Industries was established in the year 1947 and manufactures Interior and Exterior Roofing solutions. The most known products are SWASTIK roofs and CEMPLY flat sheets which are used in buildings and exteriors.

Sahyadri has managed to go international and caters to other countries also. Along with Interior and exterior roofing solutions company is also involved in security doors, power generation other sustainable material.

The net sales of the company have increased from Rs. 290 Cr. in FY 2019-20 to Rs. 470 Cr. in FY 2020-21. The net profit of the company is Rs. 61 Cr. in FY 2020-21 as compared to Rs. 26 Cr in FY 2019-20.

The current market price of the stock is Rs. 626. The stock has given 283% return in last one year and 231% in last three years. The stock is available in BSE with its symbol “SAHYADRI”  

 

4)      India Cements

India Cements Ltd was established in the year 1946. Known for its brands like Coromandel Kings, Sankar Super Power, India Cements has established itself as a top player in the Market. It is also the sponsor of IPL team Chennai Super Kings. The company has 8 Integrated Cement plants across India and is having a total capacity of 15.5 million tonnes per annum.

The net sales of the company for FY 2020-21 is Rs. 4510 Cr. against net sales of Rs. 5186 Cr. in FY 2019-20. Net profit of the company has increased from Rs. 53 Cr. in FY 2019-20 to Rs. 203 Cr in FY 2020-21.

The current market price of the stock is Rs. 197.15. The stock has given 64% returns in one year and 84% returns in three years. The stock is available in both NSE and BSE with its symbol “INDIACEM”.

 

5)      Sagar Cements

Sagar Cements was established in the year 1985 and it sells its products under the brand name SAGAR CEMENTS. The company has three cement production plants with an installed capacity of 5.75 million tonnes per annum along with many captive power plants.

The net sales of the company have increased from Rs. 1175 Cr. in FY 2019-20 to Rs. 1371 Cr. in FY 2020-21. Net profit of the company is also increased from Rs. 26.00 Cr. in FY 2019-20 to Rs. 185 Cr. in FY 2020-21.

The current market price CMP of the stock is Rs. 1234.15. The stock has given 170% returns in one year and 71% returns in three years. The stock is available in both NSE and BSE with its symbol “SAGCEM”

 

Key Takeaways:

India’s export of cement has increased through the years to the countries like Sri Lanks, UAE, Nepal, and Bangladesh. Also with the Government of India planning to make 100 smart cities to boost economic growth and infrastructure development and planning to expand the railways and other facilities for increased storage and transportation of cement, construction of dams and bridges, this all will lead to increased construction activity.

The entire sector is expected to grow with the nation’s development. However, buying the above-mentioned stocks may bring you the highest returns in the sector. Do share your thoughts and opinions in the comments section below and let us know what you think. Also mention if you want me to bring you an article on Top 5 stocks of any other industry or sector.

Disclaimer:

This article is intended for informational purposes only, and should not be considered financial advice. You should consult a financial professional before making any major financial decisions.

 

 

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