Shares of Dalmia Bharat Ltd. slipped nearly 4% on Tuesday after analysts raised concerns that the company is falling behind in the market share race among other cement producers.

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In its earnings call on Monday, the company stated that the pricing growth of Rs 30-Rs 40 per bag has sustained in the east and that of Rs 30 per bag has sustained in the South.

The company also announced a capex of Rs 6,500 crore for the current financial year and also added that volume growth should rebound by the March quarter of the current financial year.

Brokerage firm Nomura downgraded the stock to neutral from buy and maintained its price target at Rs 2,600 per share. The brokerage said that Dalmia Bharat is lagging in the race for market share.

It also said that there is no clarity yet on the completion of the Jaypee deal. The management expects it to be completed by the first half of financial year 2025.

In December 2022, Dalmia Bharat had entered into a binding framework agreement to acquire cement, clinker and power plants from Jaiprakash Associates Ltd and its associates for a consideration of Rs 5,666 crore.

On the other hand, Jefferies raised its price target on the stock to Rs 2,680 from Rs 2,440 earlier. It has maintained its buy recommendation. The brokerage also expects the second half to be better for Dalmia Bharat on hopes of superior price hikes sustaining.

Shares of Dalmia Bharat are trading 3.2% lower at Rs 2,248. The stock has risen nearly 20% so far in 2023.

(Edited by : Hormaz Fatakia)

First Published:Oct 17, 2023 11:29 AM IST