UltraTech, Dalmia Bharat offer 13–16% upside as cement sector builds on pricing discipline: MOFSL
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India’s cement sector is showing resilience despite seasonal headwinds, with prices holding firm in August 2025 and industry players balancing volumes and profitability. Historically, cement prices soften by 1–3% during August, but this year, the all-India average price remained flat month-on-month, reflecting a more disciplined pricing approach. On a year-on-year basis, prices were up around 8%, underscoring underlying strength in demand and supply discipline. The outlook for the sector is further bolstered by the prospect of a Goods and Services Tax (GST) reduction under the government’s second-generation reform drive. A cut in GST is expected to enhance affordability and sustain demand momentum, particularly in infrastructure and housing segments. With demand relatively inelastic to price changes, industry volumes are estimated to grow at 7–8% in FY26, aided by government spending, rural recovery post a favorable monsoon, and rising in...