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A mid-cap stock in the cement space has come into focus after receiving a BUY recommendation from ICICI Direct, which sees a potential upside of Rs 636 per share, translating into an upside of around 32 per cent from current levels.

The stock is part of the BSE 500 index and operates in the cement and cement products segment. While it has delivered strong long-term returns of nearly 98 per cent over the past five years, its short-term performance has been mixed.

The stock has gained 11.2 per cent over the last year, but corrected 15.73 per cent in the past three months and 4.7 per cent in the last week.

On Monday, the stock settled at Rs 2,014, marginally higher than its previous close of Rs 2,013.5. During the session, it moved between a high of Rs 2,026 and a low of Rs 2,005.

The stock is currently trading below its 52-week high of Rs 2,495.95, but remains well above its 52-week low of Rs 1,602. Its market capitalisation stands at around Rs 37,782 crore.

The company under discussion is Dalmia Bharat.

According to ICICI Direct, Dalmia Bharat has a target price of Rs 2,650, implying an upside of about 32 per cent from current levels. The brokerage attributes this optimism to the company’s pan-India expansion strategy, improving scale, and attractive valuations.

ICICI Direct highlighted that Dalmia Bharat is currently India’s fourth-largest cement manufacturer, with an installed capacity of 49.5 million tonnes per annum (mtpa). The company is on a strong expansion path, aiming to increase capacity to 61.5 mtpa by FY28, with further growth planned over the long term.

The brokerage expects healthy volume growth, better profitability driven by a higher share of premium products, and cost efficiencies. It also noted that the company’s leverage position remains comfortable despite ongoing capital expenditure, supporting its decision to maintain a BUY rating.

However, ICICI Direct cautioned about risks such as demand slowdown, execution delays, and input cost volatility

On the financial front, Dalmia Bharat reported a multi-fold jump in consolidated net profit for the quarter ended September 2025. Net profit surged to Rs 236 crore, compared to Rs 46 crore in the same quarter last year, marking a YoY growth of 413 per cent.

Revenue from operations rose 10.6 per cent, while EBITDA increased 60.3 per cent, with margins expanding to 20.3 per cent from 14 per cent a year ago.