India ranks as the world’s second-largest cement producer and contributes over 7% to the global installed capacity. According to the latest report, from FY12 to FY23, India experienced a remarkable 61% growth in its cement capacity, reaching 570 million metric tons from 353 million in FY22.
Projections indicate that the Indian cement sector is poised to witness a compound annual growth rate (CAGR) of 4-5% by the conclusion of FY27.
India’s cement production for FY24 is expected to grow by 7-8% driven by infrastructure-led by investments in infrastructure and large-scale residential projects. Notably, Foreign Direct Investment (FDI) inflows into the cement industry, encompassing the manufacturing of cement and gypsum products, reached $ 5.50 billion between April 2000 and September 2023.
Foreign Institutional Investors (FIIs) are investors from outside the country who invest in a specific country’s stock market and are regarded as market drivers. Because they make substantial market investments, it may signal the stocks to move in any direction. In addition, It gives insights into overall market sentiments. As a result, Monitoring FII purchases is significant for market participants.
Here are three cement stocks in which FII increased their stake up to 2.76% in Q3FY24 from Q2FY24.
UltraTech Cement Ltd
On Monday, UltraTech Cement Ltd shares opened at ₹9,951 per share, up 0.5 percent from the previous close price on the National Stock Exchange. The company has a market capitalization of ₹ 2,87,071 crores.
Foreign institutional investors increased their stake in the company by 1.55 percent,i.e., from 16.65 percent in Q2FY24 to 18.20 percent in Q3FY24. As of the December quarter of FY 23-24, the promoters hold a 59.96 percent stake, while retail investors hold a 7.95 percent stake in the company.
The stock has gained a return of 24 percent in the last six months and 39 percent in the previous year. UltraTech Cement Ltd’s operational revenue has increased by 8 percent yearly, from ₹ 15,521 crore in Q3FY23 to ₹ 16,740 crore in Q3FY24. During the same period, net profit rose by 67 percent, from ₹1,063 crore to ₹ 1,775 crore.
UltraTech has a consolidated capacity of 138.39 Million Tonnes Per Annum (MTPA) of grey cement. UltraTech has 23 integrated manufacturing units, 28 grinding units, one
clinkerisation unit, and 8 Bulk Packaging Terminals. In the white cement segment, UltraTech goes to market under the brand name Birla White.
UltraTech is the largest manufacturer of grey cement, ready mix concrete (RMC), and white cement in India. It is the third largest cement producer in the world, excluding China.
Recently, the company board has approved an investment of ₹ 13,000 crores to increase its capacity by an additional 21.9 million tonnes per annum (mtpa).
JK Cements Ltd
On Monday, J K Cements Ltd shares opened at ₹4,250 per share, up 0.04 percent from the previous close price on the National Stock Exchange. The company has a market capitalization of ₹ 32,6758 crores.
Foreign institutional investors increased their stake in the company by 0.85 percent,i.e., from 14.40 percent in Q2FY24 to 15.25 percent in Q3FY24. As of the December quarter of FY 23-24, the promoters hold a 59.96 percent stake, while retail investors hold a 45.70 percent stake in the company.
J K Cements Ltd’s operational revenue has increased by 20 percent yearly, from ₹2,436 crore in Q3FY23 to ₹2,935 crore in Q3FY24. During the same period, net profit rose by 667 percent, from ₹37 crore to ₹ 284 crore.
The stock has gained a return of 35 percent in the last six months and 53 percent in the previous year.
The Company has an installed Grey Cement capacity of 20 MnTPA, and total white cement capacity of 1.20 MnTPA, and wall putty capacity of 1.2MnTPA. JK White Cement sells its products across 43 countries around the globe and the Company has a strong international presence with two subsidies, JK Cement Works Fujairah FZC and JK White Cement (Africa). The Company boasts a Grey Cement production capability of 20 million metric tonnes.
Kesoram Industries Ltd
On Monday, Kesoram Industries Ltd shares opened at ₹169.25 per share, the same as the previous close price on the National Stock Exchange. The company has a market capitalization of ₹ 5,251 crores.
Foreign institutional investors increased their stake in the company by 2.76 percent,i.e., from 4.42 percent in Q2FY24 to 7.18 percent in Q3FY24. As of the December quarter of FY 23-24, the promoters hold a 43.40 percent stake, while retail investors hold a 36.01 percent stake in the company.
Kesoram Industries Ltd has operational revenue has declined by 2.5 percent yearly, from ₹986 crore in Q3FY23 to ₹961 crore in Q3FY24. During the same period, net profit has marginally increased from ₹48 crore to ₹ 49 crore.
The stock has gained a return of 95 percent in the last six months and 199 percent in the previous year.
The Cement Business of Kesoram consists of 2 integrated cement units at Sedam (Karnataka) and Basantnagar (Telangana) with a total capacity of 10.75 mtpa. Out of this total capacity, 8.50 mtpa is clinker-backed and 2.25 mtpa is surplus grinding capacityty.
Written by Omkar Chitnis
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