Buy Dalmia Bharat, target price Rs 2000: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Dalmia Bharat with a target price of Rs 2000.The current market price of Dalmia Bharat is Rs 1839.2.

Dalmia Bharat, incorporated in the year 2013, is a Mid Cap company (having a market cap of Rs 34311.45 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 stock trades at 13x/10.4x FY24E/FY25 EV/EBITDA and EV/t of USD89/86,respectively. It has traded at an average EV/EBITDA of 10.4x/9.3x over the last5/10 years. The brokerage reiterates its buy rating on the stock with a target price of Rs 2,000.

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.