Dalmia Bharat shares climbed nearly 2% on Thursday following a rating upgrade from Goldman Sachs, which moved the stock to "Buy" from "Neutral".
The global investment bank set a new price target of ₹2,020, implying approximately 17% upside from current levels.
The brokerage's decision reflects a shift in sentiment toward the Indian cement sector, driven by improving demand visibility and the company's ongoing capacity expansion plans.
Goldman Sachs noted that while energy costs remain a structural concern for the industry, the positive outlook on volume growth and margin stability outweighs these headwinds for the near term.
The upgrade comes as investors closely monitor the cement sector's ability to pass through input cost inflation to end consumers.
Dalmia Bharat has been actively expanding its production footprint, a strategy that Goldman Sachs views as a key driver for future revenue growth.