IANSHINDIICICI Securities has buy call on Dalmia Bharat with a target price of Rs 2200.0. The current market price of Dalmia Bharat Ltd. is Rs 1871.5.
Dalmia Bharat, incorporated in the year 2013, is a Mid Cap company (having a market cap of Rs 34869.17 Crore) operating in Cement sector.
Dalmia Bharat key Products/Revenue Segments include Income From Management Services for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3009.00 Crore, down -9.48 % from last quarter Total Income of Rs 3324.00 Crore and up 14.76 % from last year same quarter Total Income of Rs 2622.00 Crore. Company has reported net profit after tax of Rs 41.00 Crore in latest quarter.
The company’s top management includes Mr.Pradip Kumar Khaitan, Mr.Puneet Yadu Dalmia, Mr.Gautam Dalmia, Dr.Niddodi Subrao Rajan, Mr.Yadu Hari Dalmia, Mrs.Sudha Pillai, Mr.Virendra Singh Jain. Company has S S Kothari Mehta & Co as its auditors. As on 30-09-2022, the company has a total of 19 Crore shares outstanding.
Investment Rationale
The company has announced to acquire cement and power facilities of Jaiprakash Associates (JAL) and its associate. On completion of the deal, the company's grinding/clinker capacity shall increase to ~46/28mtpa respectively and strengthen its presence in Central India markets. It aims to be a pan-India cement company with capacity of 75mtpa by FY27 and 110‐130mtpa by FY31.
The brokerage increases its realisation growth assumption for FY23E/FY24E given the healthy price hikes in East and South India (~90% of Dalmia Bharat's capacity exposure is to these regions) during the current quarter(Q3FY23) (link). ICICI Securities increases its FY23E/FY24E EBITDA estimates by ~5%/6% andraise its target price to Rs 2,200/share (earlier: Rs2,000) based on 11x Dec’24E EV/E on quarterly rollover.
Promoter/FII Holdings
Promoters held 55.87 per cent stake in the company as of 30-Sep-2022, while FIIs owned 14.01 per cent, DIIs 8.01 per cent.
Dalmia Bharat, incorporated in the year 2013, is a Mid Cap company (having a market cap of Rs 34869.17 Crore) operating in Cement sector.
Dalmia Bharat key Products/Revenue Segments include Income From Management Services for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3009.00 Crore, down -9.48 % from last quarter Total Income of Rs 3324.00 Crore and up 14.76 % from last year same quarter Total Income of Rs 2622.00 Crore. Company has reported net profit after tax of Rs 41.00 Crore in latest quarter.
The company’s top management includes Mr.Pradip Kumar Khaitan, Mr.Puneet Yadu Dalmia, Mr.Gautam Dalmia, Dr.Niddodi Subrao Rajan, Mr.Yadu Hari Dalmia, Mrs.Sudha Pillai, Mr.Virendra Singh Jain. Company has S S Kothari Mehta & Co as its auditors. As on 30-09-2022, the company has a total of 19 Crore shares outstanding.
Investment Rationale
The company has announced to acquire cement and power facilities of Jaiprakash Associates (JAL) and its associate. On completion of the deal, the company's grinding/clinker capacity shall increase to ~46/28mtpa respectively and strengthen its presence in Central India markets. It aims to be a pan-India cement company with capacity of 75mtpa by FY27 and 110‐130mtpa by FY31.
The brokerage increases its realisation growth assumption for FY23E/FY24E given the healthy price hikes in East and South India (~90% of Dalmia Bharat's capacity exposure is to these regions) during the current quarter(Q3FY23) (link). ICICI Securities increases its FY23E/FY24E EBITDA estimates by ~5%/6% andraise its target price to Rs 2,200/share (earlier: Rs2,000) based on 11x Dec’24E EV/E on quarterly rollover.
Promoter/FII Holdings
Promoters held 55.87 per cent stake in the company as of 30-Sep-2022, while FIIs owned 14.01 per cent, DIIs 8.01 per cent.
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