Cement capacity growth may cap utilisations; JPMorgan sees pricing vs market share conflict
Published on 19/02/2026 08:20 AM
Cement capacity growth may cap utilisations; JPMorgan sees pricing vs market share conflictAccording to the brokerage, most large-cap cement companies are guiding for two key levers: cost reductions and market share gains.By Meghna Sen February 19, 2026, 8:20:58 AM IST (Published)2 Min ReadBrokerage firm JPMorgan, in its latest note on the cement sector, said it believes upcoming capacity additions, even if slightly delayed, are likely to keep industry utilisation levels capped over the next three years.
According to the brokerage, most large-cap cement companies are guiding for two key levers: cost reductions and market share gains.
However, it said that the Street's consensus expectation of Ebitda per metric tonne expansion is increasingly dependent on cement price growth rather than just operational efficiencies.
JPMorgan flagged an inherent contradiction in this outlook.
While companies, on a bottom-up basis, are targeting market share gains, such aggressive expansion strategies may not align with the top-down requirement of pricing discipline needed to support sustained price-led Ebitda growth.
JPMorgan has maintained an 'Overweight' rating on UltraTech Cement Ltd., with a price target of ₹15,000. The brokerage said execution at scale and better pricing power should continue to help the company differentiate itself from smaller peers.
The brokerage has upgraded Dalmia Bharat Ltd. to 'Neutral', with a price target of ₹2,215 per share. It said the company's numbers appear reasonable and, at this stage, it does not anticipate any major earnings cuts.
Shares of UltraTech Cement ended 0.65% higher at ₹13,068 on Wednesday, while Dalmia Bharat shares settled 0.58% higher at ₹2,125.10.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Tagscement sectorDalmia Bharatshare market todayUltraTech Cement