Can Dalmia Bharat’s Discipline Outperform Despite Weak Cement Pricing
About the CLSA View on Dalmia Bharat
CLSA has maintained an Outperform rating on Dalmia Bharat with a target price of ₹2,650, highlighting volume recovery post-monsoon and long-term optionality from the Jaisalmer greenfield expansion.
Management expects high single-digit volume growth in Q3, supported by sequential improvement in November and December after a prolonged monsoon disruption.
Key Positives Highlighted by CLSA
🔹 High single-digit volume growth expected in Q3.
🔹 Disciplined pricing strategy despite weak market.
🔹 Jaisalmer expansion as a strong organic growth lever.
🔹 Limestone reserves secured with long-term visibility.
Pricing remains weak, particularly in the eastern region, with blended realizations down 3–4 percent, which may weigh on near-term margins. However, management reiterated it will not chase volumes through aggressive discounting.
Peer Comparison – Cement Sector
| Company | Pricing Strategy | Growth Visibility |
|---|---|---|
| Dalmia Bharat | Disciplined | High (Jaisalmer) |
| UltraTech Cement | Aggressive | Moderate |
| Shree Cement | Premium-led | Stable |
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Investor Takeaway: Dalmia Bharat’s refusal to sacrifice pricing for market share, combined with strong capacity optionality, positions it favourably for medium-term outperformance. Track such disciplined businesses at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
