4 things to consider before investing in cement companies

Possibility of concrete returns

The cement industry is a hot topic right now, driven by the government's focus on better infrastructure.

Secrets to success

But, success in the cement industry hinges on four factors. Swipe to know what they are.

Raw material costs

Reducing raw material costs is crucial to thriving in the industry. Presently, Shree Cement has the lowest raw material costs.

Power and fuel costs

Saving on fuel costs, which account for nearly 40 to 50% of total costs, can help companies gain an edge. Dalmia Bharat has the lowest fuel costs per tonne.

Transport costs

Cement is bulky, and hence, transport costs are high. Keeping a lid on it means higher margins. Ramco Cements leads here.

Scale

Success in the cement industry is based on making your product ubiquitous. So, higher capacities are a must. UltraTech Cement has the highest capacity in the industry.

Word of caution

The companies mentioned above are not stock recommendations. Do the due diligence before investing.

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