Shares of Dalmia Bharat Ltd jumped 1.62% to ₹1,773 on Tuesday, March 25, after global brokerage UBS upgraded the stock to ‘Buy’ and set a revised target price of ₹2,100. The move came as part of UBS’s broader bullish view on the Indian cement sector.
UBS noted that the sector’s recent rough patch is nearing its end, with demand revival, easing cost pressures, and industry consolidation expected to drive an earnings upcycle from FY26. The brokerage highlighted that cement prices had declined nearly 8% in the first nine months of FY25 but now appear to have stabilised.
UBS cited structural cost-saving efforts, such as logistics and energy efficiency optimisation, as key drivers of margin improvement. It also expects volume growth to pick up due to a housing upcycle and increased infrastructure spending by the government.
Alongside Dalmia Bharat, UltraTech Cement and Ambuja Cements were also upgraded to ‘Buy’, with target prices of ₹13,000 and ₹620, respectively. UBS maintains a positive long-term view, stating the sector is currently trading slightly above its five-year average EV/EBITDA, offering room for further rerating.
