Dalmia Bharat share price gained nearly 2% on Thursday, 25 June, after global brokerage Goldman Sachs upgraded the cement maker to a “Buy” from “Neutral”, according to a CNBC-TV18 report.
The brokerage revised its target price to ₹2,020 per share from ₹2,090 earlier, implying nearly 17% upside from the stock’s previous closing level.
In its latest note, Goldman Sachs outlined three key factors that have weighed on the cement sector’s performance over the last three months. These include concerns over elevated energy costs due to the West Asia conflict and a weakening rupee, a softer demand outlook amid expectations of lower government spending, and continued capacity additions across the industry, which have raised concerns over the sector’s pricing power.
According to the CNBC-TV18 report, Goldman Sachs believes the first of these concerns has largely eased following the de-escalation of the US-Iran conflict, which has led to a sharp correction in crude oil prices and supported the rupee against the US dollar.
However, the brokerage cautioned that risks still remain. A key emerging concern is the possibility of a weaker-than-expected monsoon season, which could affect rural construction activity and weigh on cement demand.
Despite these risks, Goldman Sachs described as a tactical play within the cement sector. The brokerage expects the company to deliver the highest growth among its peers and believes the stock is currently trading at attractive valuations relative to the broader industry, prompting the rating upgrade.
Dalmia Bharat share price today
Dalmia Bharat share price today opened at ₹1,742.10 apiece on the BSE, the stock touched an intraday high of ₹1,765 per share, and an intraday low of ₹1,728.05 apiece.
Rajesh Bhosale, Equity Technical and Derivative Analyst at , said that following Wednesday’s strong close, Dalmia Bharat opened with a gap-up on Thursday. However, the stock gave up its early gains and was trading largely flat during the session.
Bhosale noted that Wednesday’s strong bullish engulfing candle is a positive technical formation. As long as the stock holds above the low of that pattern near the ₹1,670 level, the uptrend is likely to remain intact and prices could extend their gains.
He further highlighted that the Relative Strength Index (RSI) has crossed its recent swing highs, indicating strengthening momentum and supporting the possibility of a continued upward move.
On the upside, the 50-day exponential moving average (DEMA) near ₹1,820 is seen as the immediate resistance level, followed by the 89-day DEMA around ₹1,860.
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