Sharekhan's research report on Dalmia Bharat
In Q1FY2022, revenues and net profit were lower than expected while operational profitability in terms of EBITDA/tonne largely remained in-line. Dalmia announced a capital allocation plan over the next decade addressing medium and longer-term growth plans. Cement capacity to grow at 14-15% CAGR maintaining Net debt/EBITDA below 2x. Transparency, corporate governance, treasury allocation, non-core asset divestments, green fuel, shareholder returns are key outcomes of the plan.
Outlook
We maintain a Buy on stock with a revised PT of Rs. 2,410, as we see further upside considering its strong earnings growth outlook over FY2021-FY2024E.
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