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Dalmia Bharat may move to Rs 2300: Mehraboon Irani

Mehraboon Irani of Nirmal Bang Securities feels that Dalmia Bharat may move to Rs 2300.

September 27, 2016 / 17:13 IST
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Mehraboon Irani of Nirmal Bang Securities told CNBC-TV18, "If you look at Dalmia Bharat and OCL, they are still ruling at their all time highs, certainly Dalmia Bharat. I think we have a very conservative target of around Rs 2,300 for the stock and at the present Rs 1,850 there is still maybe 20-25 percent left for the stock to go up. I like the cement pack. I believe that if you believe in the India story, you better go in for cement sector. Quite a few of the stocks have gone up. Can they correct? Answer is yes but Dalmia Bharat I have liked for a simple reason, the operational leverage benefit.""The company is still working at around 50-55 percent of its total capacity. So, if you believe that cement off take will improve as we go ahead, I think the company has already incurred the fixed cost, it has just to take advantage of the operational leverage. This is the company which will keep on reporting numbers. I think the earnings for next year should be over Rs 100 for 2017-2018 and at Rs 100, Rs 2,300 I don’t think many people are going to argue on the valuation," he added.

first published: Sep 27, 2016 05:13 pm

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