With the cement industry expected to witness a demand bounce back and make a firm recovery in the upcoming fiscal year, UBS has turned optimistic on the sector. The brokerage firm is positive on the sector, on the back of structural cost savings, price stabilization after an 8 per cent decline in 9MFY25, and sector consolidation led by UltraTech Cement and Ambuja Cement. UBS upgraded Dalmia from Sell to Buy, given its attractive valuation and the sector’s demand and margin tailwinds. “We are not modelling the company’s aggressive guidance on capacity or volume growth and expect Dalmia to outperform the industry only marginally on volume growth,” it said.