Jaypee deal an attractive proposition for Dalmia, more clarity awaited: Brokerages

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26 Aug, 2025 12:21

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Most brokerages say Dalmia Bharat’s deal for buying Jaiprakash Associates' cement assets is at an attractive valuation that would add one more region to Dalmia's footprint and take it closer towards the goal of becoming a pan-India cement player. However, they expect more competition in the central region as stronger hands access the existing capacity with scalability options. Most research houses are awaiting clarity from the Dalmia Bharat’s management on incremental capex, deal timelines, expansion capabilities and limestone reserves, among other things.

Key brokerage takeaways on Dalmia Bharat:

Maintains 'Overweight' rating; Target Price (TP) of Rs 1,845/share.

Proposed acquisition at an attractive valuation.

Growth optionality of under-utilised assets moving to stronger hands.

Dalmia’s balance sheet can absorb such a transaction.

Acquisition to lead to further capacity addition for the industry in the medium term.

Dalmia Bharat remains the only overweight in cement coverage.

Maintains 'Overweight' rating; TP of Rs 1,900/ share.

Help diversify Dalmia’s geographical footprint, which is mainly in the East and South regions,

Including Jaiprakash assets, Dalmia’s potential capacity would be estimated 58.5 million tonne by FY24

Enterprise Value (EV) of estimated Rs 6,000/tonne (of grinding capacity) versus average deal values of Rs 6,500 over the past few years.

Maintains 'Buy' rating; Target price of Rs 2,060/share.

The indicative acquisition EV at Rs 5,670 crore works out to $73/tonne.

Dalmia will enter the central region with an estimated 10 percent capacity share.

Add one more region to its vision of emerging as a pan-India cement player.

Increased competitive intensity in the central region.