Sharekhan has given Buy recommendation for Dalmia Bharat with a target price of Rs. 2410 in its research report issued on Jul 28, 2021
Sharekhan’s research report on Dalmia Bharat
In Q1FY2022, revenues and net profit were lower than expected while operational profitability in terms of EBITDA/tonne largely remained in-line. Dalmia announced a capital allocation plan over the next decade addressing medium and longer-term growth plans. Cement capacity to grow at 14-15% CAGR maintaining Net debt/EBITDA below 2x. Transparency, corporate governance, treasury allocation, non-core asset divestments, green fuel, shareholder returns are key outcomes of the plan.
We maintain a Buy on stock with a revised PT of Rs. 2,410, as we see further upside considering its strong earnings growth outlook over FY2021-FY2024E.