The Tamil Nadu government has imposed a ₹160 per tonne royalty on mined limestone, impacting companies reliant on the state’s supply. This is seen negatively for firms with a high percentage of their clinker mix in Tamil Nadu, as it raises costs. few companies are particularly affected due to their significant clinker dependency in the region.
India’s limestone mining sector is thriving, with production reaching 450 million metric tons in FY 2023-24. In Q1 FY 2024-25, production grew to 116 million metric tons, marking a 1.8% increase. The sector contributes significantly to India’s economic growth, driven by demand from cement and steel industries.
Here are the stocks in focus after the Tamil Nadu government has imposed ₹160 per tonne royalty on limestone:
1. Dalmia Bharat Ltd
Dalmia Bharat Limited is an India-based cement manufacturing company. The Company is principally engaged in the business of manufacturing and selling of cement and its related products. The Company’s segments include Cement division and Others.
With a market capitalization of Rs 30,592.82 crore, the shares were trading at Rs 1,631.05 per share, decreased around 5 percent as compared to the previous closing price of Rs 1,686.30 apiece. Dalmia Bharat’s clinker capacity in Tamil Nadu stands at 23.5 MTPA, with expansions set to raise it to 27.1 MTPA by FY26.
This aligns with their broader strategy to increase overall cement capacity to 75 MTPA by 2027, reinforcing their growth trajectory through recent additions and upgrades in production infrastructure.
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2. The Ramco Cements Ltd
The Ramco Cements Limited is an India-based company, which is engaged in the manufacture of cement, ready mix concrete and dry mortar products. The Company caters mainly to the domestic markets. The Company also sells cement in Sri Lanka through direct exports and the Maldives through merchant exports.
With a market capitalization of Rs 19,110.15 crore, the shares were trading at Rs 810.65 per share, decreased around 5.09 percent as compared to the previous closing price of Rs 854.10 apiece. The Ramco Cements Limited is a leading cement manufacturer in South and East India with a cement production capacity of approximately 24.04 MTPA and a clinker capacity of around 16 MTPA.
The company plays a key role in the regional cement market, leveraging its strong production capabilities to meet growing infrastructure and construction demands.
Written by Abhishek Singh
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