UBS Securities bets on 3 cement stocks with up to 25% upside potential
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UBS Securities has highlighted Ambuja Cement, UltraTech Cement, and Dalmia Bharat as its top stock selections in the Indian cement sector, underscoring their significant potential to benefit from a rebound in demand, lower input costs, and continued structural reforms in the industry. This comes despite a subdued start to FY26 for the sector, with cement volumes rising just 3% year-on-year in Q1—falling short of UBS’s 10% growth estimate. The weaker performance was largely due to the early arrival of the monsoon and sluggish demand in consumer-driven regions. Still, UBS remains optimistic about the sector's near- to medium-term prospects, forecasting robust EBITDA growth in Q2 and reaffirming its full-year volume growth outlook of 7–8%. Industry players also maintain confidence, sticking to their full-year volume targets. Demand varied regionally, with strong growth in central India contrasting with weaker performance in the northern ...