The IIFL Securities Report: Buy Dalmia Bharat - September 23

IIFL Securities recommends buying Dalmia Bharat shares, setting a target price of Rs 1950. This represents a potential upside of 2.7% from the current market price of Rs 1898.7. The brokerage firm is positive on the company's long-term prospects, citing its strong market share in the eastern and central regions of India, as well as its expansion plans and cost-optimization initiatives.

About Dalmia Bharat:

Dalmia Bharat Limited (DBL) is a leading Indian cement manufacturer with a presence in 10 states and 14 integrated manufacturing units. DBL has a total cement manufacturing capacity of 37.5 million tonnes per annum (MTPA), making it one of the largest cement producers in the country. The company's key markets include eastern, southern, and western India. DBL's products include Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), and slag cement. The company also produces ready-mix concrete, fly ash, and aggregates. DBL is committed to sustainability and has adopted various eco-friendly practices, including the use of waste materials and renewable energy sources.

52 Week Price Trend:

Dalmia Bharat's (NSE: DALBHARAT) current market price (CMP) stands at Rs 1898.7, reflecting a significant discount compared to its 52-week high of Rs 2430.7. However, it remains above its 52-week low of Rs 1706.65. The stock has faced headwinds due to concerns over rising input costs and subdued demand in the cement sector. Analysts believe that while the company's strong balance sheet and cost-cutting measures may provide support, the near-term outlook remains challenging. Investors should closely monitor market conditions and the company's financial performance before making any investment decisions.

Stratzy's MOST Analysis:

DALBHARAT's "BBB" rating according to Stratzy's MOST framework implies that the company possesses medium fundamental risks. This assessment is based on an evaluation of the company's management, outlook, safety, and trend indicators. The framework assigns a score to each of these pillars, which are then combined to create an overall rating. A "BBB" rating indicates that DALBHARAT has some strengths and weaknesses in its fundamental aspects, and investors should exercise caution when considering the investment.

Company's Fundamentals:

Dalmia Bharat (NSE: DALBHARAT), a reputable cement manufacturer listed on the National Stock Exchange (NSE), offers investors valuable financial metrics. Its Stock PE (Price-to-Earnings) ratio of 32.7 indicates that investors are willing to pay Rs.32.7 for every Re.1 of earnings. The PB Ratio (Price-to-Book) of 2.48 suggests that the market is valuing the company at 2.48 times its book value, indicating a premium valuation. Additionally, Dalmia Bharat offers a modest Dividend Yield of 0.43%, implying that for every Rs.100 invested, shareholders may receive Rs.0.43 as dividends. These metrics provide insights into the company's financial performance and help investors make informed investment decisions.

Fundamental and Technical information provided in this blog were last updated on 20 Sep, 2024

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