Sharekhan's research report on Dalmia Bharat
The Eastern and Southern regions sees strong improvement in average cement prices both q-o-q and y-o-y during Q1FY2022. The same is expected to aid OPM while covid second wave affects utilization level. Post weak April-May 2021, June shows gradual improvement. Expect demand to kick start in two to three months. Continuous capacity additions to capture expected rise in demand. Balance sheet to remain strong while strong cash flow generation expected over the next two years despite capital expenditures.
Outlook
We maintain Buy on Dalmia Bharat (Dalmia) with a revised PT of Rs. 2,150, owing to favourable valuation and positive regional dynamics.
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