Buy Dalmia Bharat; target of Rs 2510: Nirmal Bang

Nirmal Bang is bullish on Dalmia Bharat has recommended buy rating on the stock with a target price of Rs 2510 in its research report dated March 29, 2023.

Broker Research

March 29, 2023 / 12:02 IST

Buy

26 Aug, 2025 12:21

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Nirmal Bang's research report on Dalmia Bharat

DBL has grown to become one of the most trusted brands in the building materials industry. It has 14 production plants and units, sprawling across all regions of the country, except North. The company’s ATL and BTL efforts have enabled it to maintain a strong brand equity and brand recall. DBL has expanded steadily at the cost of US$75/tonne, which is far less than the cost of establishing new Greenfield capacity. It has been producing decent cash flows, enabling it to reduce debt besides executing acquisitions and expansions. Given the company's strong growth visibility, improved balance sheet and attractive value, we anticipate a re-rating. Our primary investment rationale is listed below. Refer to Exhibit 8 for DBL’s stock performance.

Outlook

We initiate coverage on Dalmia Bharat Ltd. (DBL) with a strong “BUY" recommendation. With a current cement capacity of 37MTPA and a power capacity of 195MW, the company is the 4 th largest cement producer in India. In addition, DBL is in the midst of increasing its current capacity from 37MTPA in FY23 to 49MTPA by FY24E and 130MTPA by FY31E (CAGR of 17.5% during FY22-FY31E).

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