Broker’s call: Dalmia Bharat (Buy)

Table of Content


Target: ₹2,180

CMP: ₹1,700.60

Dalmia Bharat Ltd (DBL) has announced capacity expansion plan of 6 MTPA Grinding and 3.6 MTPA Clinker unit costing Rs 3,520 Cr to be met out of internal accrual and debt. The company will establish a 3.6 MnTPA clinker unit and a 3 MTPA grinding unit at its existing Belgaum plant, Karnataka. And a new greenfield split grinding unit with a capacity of 3 MTPA in Pune, Maharashtra.

We remain positive on the growth prospects of the company and expect the company to achieve a Volume/Revenue/EBITDA/PAT CAGR of 9/11/22/47 per cent over FY25-FY27E. This growth will be driven by capacity expansion, market share gains, operational efficiencies. Additionally with the growing pace of consolidation and capacity expansion by top players, their overall market share is set to increase further to 65-70 per cent by FY27-28. This trend will positively influence cement pricing, economies of scale, and supply chain efficiency.

The company, being among the top 5 players in the country, is well-positioned to benefit from this consolidation in the medium to long term.

The stock is currently trading at 11x/10x FY26E/FY27E EV/EBITDA and EV/tonne of $80 & $77 and with the recent correction in stock price, valuations have turned attractive. We maintain our Buy rating with a target price





Source link

AIMPWA

mmkrishnandasu@gmail.com http://msmenews.sbs

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent News

Trending News

Editor's Picks

Insurance reforms: Govt to further relax foreign investment rules while raising FDI limit to 100%

The government plans to further liberalise foreign investment rules for insurance companies by removing the condition that mandates the presence of Indian residents in the boards and top management of insurance entities, said top finance ministry officials. The insurance reforms bill will be introduced in the ongoing budget session of parliament, one of these officials...

When consumption push and fiscal consolidation go hand in hand

The budget this year came in the background of an economic slowdown led by weak urban consumption and lower government capex. Hence, finance minister (FM) Nirmala Sitharaman was expected to stimulate growth while continuing on the path of fiscal consolidation. The budget has delivered on this by incentivizing urban consumption through tax cuts while continuing...

Kerry Washington invests in wedding marketplace Cheersy

Kerry Washington is expanding her angel investment portfolio, serving as lead investor in the pre-seed round of the wedding marketplace Cheersy.  Cheersy, which was founded in 2024 by Amy Shack Egan, helps couples find day-of service wedding coordinators and has raised a total of $550,000, from other investors including Christina Tosi, the founder of Milk...

ALL INDIA MSMES PROMOTION AND WELFARE ASSOCIATION

Quick Links

Popular Categories

Must Read

AIMPWA © 2025- All Right Reserved. Designed and Developed by  growGX.com