Here are some reasons behind this surge:
Rural Housing Push
The Union Budget for financial year 2025 has allocated close to ₹45,000 crore for rural housing. The Finance Minister Nirmala Sitharaman had announced that another 2 crore houses will be built under the Pradhan Mantri Awas Yojana. Sources also tell CNBC-TV18 that there is a plan to construct another 2 crore houses.
GST Rationalisation In The Works?
There is also speculation that the Goods and Services Tax (GST) rate will be rationalised going forward, which can be positive for the industry. Currently, a GST of 28% is levied on cement.
Return Of Chandrababu Naidu
All Andhra Pradesh-based stocks or those with exposure to the state have been on a tear ever since the TDP was voted back to power in the assembly. With Naidu set to return for a fourth term, expectations are sky high that the TDP will revive the plan to develop Amravati as the capital of the state, a plan that was put on the backburner during the previous regime.
Stocks like KCP and NCL Industries have their entire capacity in the state, while Sagar Cement has 80% of its capacity based out of Andhra Pradesh.
| Stock | % Capacity In Andhra |
| UltraTech | 8 |
| Ramco Cement | 30 |
| Sagar Cement | 80 |
| KCP | 100 |
| NCL Industries | 100 |
Cement Prices Bottomed?
There is also hope on the street that the current cement prices have bottomed out, along with an expectation that companies will increase their prices post the monsoon season once demand resumes. A move like this will also be positive for the industry
