Sharekhan has given Buy recommendation for Dalmia Bharat with a target price of Rs. 1900 in its research report issued on Mar 02, 2021

Sharekhan’s research report on Dalmia Bharat

Multiples to expand from 8.5x EV/EBITDA FY23E currently as it gains size, geographical diversification and higher operational profitability. Dalmia is on an expansion spree in the medium to long term and aims to double its capacity and become a larger pan-India player. Despite aggressive expansions, it is likely to achieve net cash position by FY2023E led by free cash flows of almost Rs. 1,200 crore p.a. during FY2021-FY2023E. The government’s infrastructure investment plan over the next five years, impetus on affordable housing and India’s structural growth drivers for cement consumption present strong growth tailwinds.


We initiate coverage on Dalmia Bharat (Dalmia) with a Buy rating and price target of Rs. 1,900.