Buy Dalmia Bharat; target of Rs 2830: Sharekhan

Buy

Sharekhan's research report on Dalmia Bharat

Cement prices in Eastern region is hiked by Rs. 70 per bag in two tranches in most states during September till date leading to multi-year high prices for the region. Incremental price hike of Rs. 20 per bag in few states in East may be rolled out on September 17th and by month end. Overall demand environment resurrect in August and is expected to sustain in September. Company eyes 15-17% y-o-y volume growth for FY2024. It would add a 4.9 MTPA capacity in South India to reach 46.6 MTPA by FY2024 end. JP Assets’ acquisition completion gets delayed to FY2024-end.

Outlook

We upgrade Dalmia Bharat to Buy with a revised PT of Rs. 2,830, factoring upwardly revised estimates and rolling forward our valuation to September 2025E earnings.

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Dalmia Bharat - 14-09-2023 - khan