Buy Dalmia Bharat; target of Rs 2000: Motilal Oswal

Motilal Oswal's research report on Dalmia Bharat

DALBHARA’s EBITDA/OPM stood at INR3.8b/13% in 2QFY23, in line with estimates. Adjusted PAT (after MI) stood at INR270m (v/s estimated INR207m), fueled by higher other income. Management is confident to reach at 49mtpa capacity by FY24E and has set a target to reach 70-75mtpa capacity by FY27 (earlier target of 60mtpa by FY25E), for which, details will be shared over the next few quarters. We have kept our earnings estimates largely intact.

Outlook

We reiterate our Buy rating with a TP of INR2,000 (from INR1,815 earlier), valuing it at 12.5x Sep’24 EV/EBITDA (v/s Mar’24 earlier).