Sharekhan's research report on Dalmia Bharat
In Q4FY2024, the company reported a beat in consolidated revenue, led by strong volume growth, although operational profitability missed our estimates due to weak realisations and higher-than-expected opex per tonne. Management targets to grow at 1.5x of the industry’s volume growth for FY2025, while cement prices may not revive in H1FY2025. The focus is on retaining the market share. The company remains on track to increase its organic cement capacity to 49.5mtpa by FY2025, excluding JP Assets. It would be revisiting its medium-term capacity expansion plans over the next few quarters.
Outlook
We retain our BUY rating on Dalmia Bharat Limited with a revised PT of Rs. 2,250, factoring downwardly revised estimates while expecting improvement in the cement pricing environment post H1FY2025.
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