Emkay Global Financial's research report on Dalmia Bharat
Dalmia Bharat’s (Dalmia’s) board has approved the sale of its entire 42.36% stake (owned through its subsidiary) in Dalmia Bharat Refractories (DBRL) to Sarvapriya Healthcare Solutions Private Ltd. (Sarvapriya, a promoter group company) for Rs8bn. The said transaction is largely in line with the company’s strategy of making Dalmia a pure-play cement company and exiting the non-core business/investments. Transaction details: Dalmia Cement (Bharat) Ltd (DCBL), a wholly-owned subsidiary of Dalmia, has entered into a binding agreement to sell its entire investment of 18.7mn shares (42.36% stake) of DBRL (an associate company) for a consideration of Rs8bn to Sarvapriya, a promoter group company. To recap, DBRL had executed a business transfer agreement with RHI Magnesita India (RHI) in Nov-22, for transfer of its 100% shareholding in Dalmia OCL (refractory business arm of DBRL) for a total consideration of Rs21bn (Rs3.9bn cash and 27mn shares in RHI at Rs632.5/sh, totaling Rs17bn). The transaction was concluded on Jan23.
Outlook
We have a HOLD rating on the stock, with TP of Rs1,750/sh, based on 9x its FY25E EV/E.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
