Buy Dalmia Bharat; target of Rs 2400: Motilal Oswal

Motilal Oswal is bullish on Dalmia Bharat recommended buy rating on the stock with a target price of Rs 2400 in its research report dated August 28, 2023.

Broker Research

August 29, 2023 / 11:06 IST

Buy

26 Aug, 2025 12:21

Volume

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Motilal Oswal's research report on Dalmia Bharat

DALBHARA has been consistent in its capacity expansion over the past decade, with a 14% CAGR in grinding capacity since FY11. In the long run, the company expects a 14-17% CAGR in capacity and aims to increase its cement grinding capacity to 110-130mtpa by 2031. In our recently concluded Annual Global Investor Conference, Managing Director Mr. Puneet Dalmia shared his views on the industry’s long-term potential and changing dynamics. He expects the consolidation to accelerate and believes that the top-4 players’ volume share is expected to rise to 69% by FY30E vs. 44%/58% in FY13/FY23. The top-4 players will garner 85% of industry’s demand share over FY23-30. He expects a 6.5% CAGR in industry capacity over FY24-30, lower than the ~8% CAGR in demand.

Outlook

We value DALBHARA at 13x FY25E EV/EBITDA to arrive at a TP of INR2,400, an upside of 18% from current levels. We maintain our BUY rating on the stock.

For all recommendations report, click here