The Tamil Nadu authorities has imposed a ₹160 per tonne royalty on mined limestone, impacting corporations reliant on the state’s provide. That is seen negatively for corporations with a excessive proportion of their clinker combine in Tamil Nadu, because it raises prices. few corporations are notably affected as a consequence of their important clinker dependency within the area.
India’s limestone mining sector is prospering, with manufacturing reaching 450 million metric tons in FY 2023-24. In Q1 FY 2024-25, manufacturing grew to 116 million metric tons, marking a 1.8% improve. The sector contributes considerably to India’s financial progress, pushed by demand from cement and metal industries.
Listed below are the shares in focus after the Tamil Nadu authorities has imposed ₹160 per tonne royalty on limestone:
1. Dalmia Bharat Ltd
Dalmia Bharat Restricted is an India-based cement manufacturing firm. The Firm is principally engaged within the enterprise of producing and promoting of cement and its associated merchandise. The Firm’s segments embody Cement division and Others.
With a market capitalization of Rs 30,592.82 crore, the shares had been buying and selling at Rs 1,631.05 per share, decreased round 5 % as in comparison with the earlier closing value of Rs 1,686.30 apiece. Dalmia Bharat’s clinker capability in Tamil Nadu stands at 23.5 MTPA, with expansions set to lift it to 27.1 MTPA by FY26.
This aligns with their broader technique to extend general cement capability to 75 MTPA by 2027, reinforcing their progress trajectory by current additions and upgrades in manufacturing infrastructure.
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2. The Ramco Cements Ltd
The Ramco Cements Restricted is an India-based firm, which is engaged within the manufacture of cement, prepared combine concrete and dry mortar merchandise. The Firm caters primarily to the home markets. The Firm additionally sells cement in Sri Lanka by direct exports and the Maldives by service provider exports.
With a market capitalization of Rs 19,110.15 crore, the shares had been buying and selling at Rs 810.65 per share, decreased round 5.09 % as in comparison with the earlier closing value of Rs 854.10 apiece. The Ramco Cements Restricted is a number one cement producer in South and East India with a cement manufacturing capability of roughly 24.04 MTPA and a clinker capability of round 16 MTPA.
The corporate performs a key position within the regional cement market, leveraging its robust manufacturing capabilities to fulfill rising infrastructure and building calls for.
Written by Abhishek Singh
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