Hold Dalmia Bharat; target of Rs 1750: Emkay Global Financial

Emkay Global Financial recommended hold rating on Dalmia Bharat with a target price of Rs 1750 in its research report dated February 06, 2023.

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February 10, 2023 / 21:43 IST

26 Aug, 2025 12:21

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Emkay Global Financial's research report on Dalmia Bharat

Dalmia Bharat’s Q3FY23 EBITDA increased by 58% YoY/70% QoQ to Rs6.4bn, broadly in line with our estimates. EBITDA/ton increased 43% YoY/56% QoQ to Rs1,022. Management reiterated its guidance to expand its cement capacity to 49mt/75mt by FY24/FY27, respectively vs current capacity of 37mt. The company has signed a definitive agreement for acquisition of cement assets (clinker: 3.3mt; cement: 5.2mt. and TPP: 280MW) of Jaiprakash Associates at an Enterprise Value of Rs32bn, subject to certain conditions. We have yet to build these into our estimates.

Outlook

We broadly maintain FY24E-25E EBITDA and revise the Mar-24E target price to Rs1,750/share (vs Rs1,600 earlier), post the half-yearly roll-over. Our DCF-based TP implies one-year forward EV/EBITDA of 9x. In the absence of near-term catalysts, we maintain a HOLD rating on the stock.

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