Hold Dalmia Bharat; target of Rs 2125: Emkay Global Financial

Emkay Global Financial recommended hold rating on Dalmia Bharat with a target price of Rs 2125 in its research report dated July 22, 2023.

Broker Research

July 25, 2023 / 11:09 IST

hold

26 Aug, 2025 12:21

Volume

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Emkay Global Financial's research report on Dalmia Bharat

Dalmia Bharat’s Q1FY24 EBITDA increased 4% YoY/decreased 14% QoQ to Rs6.1bn, coming in 7-8% below our/Consensus estimates owing to lower realization and higher cost. Accordingly, EBITDA/ton declined 7-8% YoY and QoQ to Rs872 (Emkay: Rs950). With delay in receipt of regulatory approvals, we factor-in the acquisition of JPA’s various cement assets, from FY25. Company has recapitulated its capacity growth target to 47mt/75mt/110- 130mt by FY24/FY27/FY31, respectively (from 41.7mt currently). Building-in the Q1FY24 miss, we cut FY24E EBITDA by 7%, but maintain FY25E EBITDA.

Outlook

Given Company’s growth visibility, strong balance sheet and recent divestment of non-core assets, we raise our target EV/E by one notch to 11x (earlier 10x) and revise Jun-24E TP to Rs2,125/sh, post quarterly roll-over; maintain HOLD.

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