HSBC raises share price target on five cement stocks by up to 45% — Check its top pick

Brokerage firm HSBC has upgraded its recommendations on two cement stocks Ambuja Cements and Shree Cement in its latest note on Tuesday, September 16, while highlighting that India's largest cement company, UltraTech, remains its preferred pick within the space.

HSBC has upgraded its rating on Ambuja Cements to "buy" from "hold" and raised its price target by 43% to ₹700 per share from the previous ₹490 apiece. It also upgraded its rating on Shree Cement to "hold" from "reduce" with a price target of ₹32,200 apiece from ₹22,000 earlier.

It has maintained its "buy" rating on

Dalmia Bharat but raised its target price by 45% to ₹2,900 from ₹2,000. It has a "hold" rating on ACC Ltd. with a revised price target of ₹2,040 from ₹2,100 earlier.

Company	Target price (₹)	Upside (%)
Ambuja Cements	700 From 490	22.7
Shree Cement	32,200 From 22,000	9.9
Dalmia Bharat	2,900 From 2,000	20.2
ACC	2,040 From 2,100	9.7
UltraTech Cement	15,410 From 12,100	24.1

However, UltraTech Cement is HSBC's preferred pick, and the brokerage has raised its price target on India's largest cement company to ₹15,410 apiece from ₹12,100 per share earlier.

Company	Buy	Sell	Hold
Ambuja Cements	36	7	3
Shree Cement	17	9	9
Dalmia Bharat	22	9	9
ACC	25	11	6
UltraTech Cement	38	4	4

HSBC wrote in its note that there is increased consolidation within the industry as the top four players now command 57% of the total market share. This, along with leverage at smaller companies is positive for pricing, HSBC wrote in its note.

It sees the financial year 2026 as the peak of capacity additions in the current cycle.

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Shares of UltraTech Cement are trading 0.6% higher at ₹12,505, while those of Dalmia Bharat are trading 1.1% higher at ₹2,442.6. ACC shares are up 0.6% at ₹1,871.5.