Cement prices surge across India, rising by Rs 10-30 per bag, as CLSA upgrades its outlook on UltraTech Cement.

As of December 11, 2024, cement prices have increased by 10-30% across India due to a hike by dealers. This price increase translates to a 3.5% quarterly growth, with year-on-year prices still down 5%. The hike is attributed to a demand rebound in the real estate and infrastructure sectors, particularly after the post-festive season. In western states, prices have risen by around 5-10% to Rs 350-400 per 50 kg bag. In Delhi, prices have increased by Rs 20 per bag, ranging from Rs 340 to 395 per bag. In the southern and eastern regions, prices have increased more, but remain lower than in western and northern regions. According to CLSA, the price increase is expected to continue in 2H FY2025 and FY2026, with commentators remaining selective on the sector and preferring Ultratech Cement.