Sharekhan's research report on Dalmia Bharat
The stock is currently trading at 12.4x/11x its FY26/27 EV/EBITDA. In Q4FY2025, Dalmia reported a ~5% decline in consolidated revenue, mainly because of volume de-growth of 2.8% y-o-y. EBITDA/ton reached Rs 922, up 24% YoY, driven by cost leadership initiatives and increased renewable power capacity. The company added 2.9 mt cement capacity, increasing its total capacity to 49.5 mt. The company aims to increase the capacity to 55.5 mt by FY27 and 75 mt by FY28. Management aims to balance profitability and volume growth. The operating cost reduction target of Rs. 150-200 per tonne over the next two years remains intact, with half of this target expected to be achieved in FY26.
Outlook
We retain BUY on Dalmia with a revised PT of Rs. 2,300, valuing it at 13x on its FY27 EV/EBITDA.
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