Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Buy Dalmia Bharat; target of Rs 1915: Motilal Oswal

Motilal Oswal is bullish on Dalmia Bharat recommended buy rating on the stock with a target price of Rs 1915 in its research report dated May 10, 2022.

May 12, 2022 / 02:33 PM IST

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

  • bselive
  • nselive
Todays L/H

Motilal Oswal's research report on Dalmia Bharat

Dalmia Bharat (DALBHARA)'s 4QFY22 performance was above our estimates primarily driven by better realization (4% above estimates). EBITDA was at INR6.8b v/s estimated INR5.3b and OPM was at 20.2% v/s estimated 16.8%. However, higher costs (up 10% YoY) continued to impair margins (OPM dipped 4.2pp YoY and EBITDA/t was down 13% YoY). We cut our FY23E/ 24E EBITDA by 2%/4% considerindg higher energy costs. This along with likely higher interest expenses leads to our EPS reduction of 11%/4% in FY23E/24E, respectively. We like the stock owing to its growth plans, locational advantage in East India and cost reduction measures.


We maintain our BUY rating with a TP of INR1,915 (v/s INR2,000 earlier), based on 12x FY24E EV/EBITDA.


For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: May 12, 2022 02:33 pm
ISO 27001 - BSI Assurance Mark