Dalmia Bharat
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Dalmia Bharat's recent strategic initiatives, particularly its aggressive capacity expansion and the integration of Jaypee assets, are pivotal in shaping its financial outlook. Management's commitment to achieving a cement capacity of 67 million tons by FY28, alongside a focus on premium product offerings, positions the company to capitalize on the robust demand driven by government infrastructure spending. However, the company faces headwinds from elevated input costs and the complexities of integrating new assets, which could pressure margins in the near term. Vista's forecast reflects stable revenue growth and margins, supported by the anticipated operational efficiencies from these expansions. The cement industry is experiencing a favorable environment, with improving pricing power and a stable demand outlook, which aligns with Dalmia Bharat's growth strategy. Over the next 12-24 months, key opportunities include the successful commissioning of new projects and enhanced market share through premiumization, while watchpoints include the management of cost inflation and execution risks associated with rapid expansion
Why We Like This Stock
- Aggressive capacity expansion to 67 million tons by FY28 enhances market positioning
- Focus on premium product offerings is expected to improve revenue quality and margins
- Strong demand from government infrastructure projects supports long-term growth prospects
Things To Watch Out For
- Elevated input costs, particularly in fuel and logistics, pose risks to margin stability
- Integration challenges with newly acquired assets may impact short-term financial performance
- Execution risks related to timely project completions could hinder growth targets
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 14,691 | 13,980 | 14,804 | 15,340 | 17,173 |
| Profit Before Tax (Cr.) | 987 | 842 | 1,476 | 1,340 | 2,111 |
| PBT Margin | 6.7% | 6.0% | 997.0% | 8.7% | 12.3% |
| Net Profit (Cr.) | 866 | 722 | 1,178 | 1,072 | 1,663 |
| Earnings Per Share | 45.6 | 38.0 | 61.1 | 55.6 | 87.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 2,430 | 29-Apr-2026 |
| BOB Capital Markets | ► Hold | 2,110 | 29-Apr-2026 |
| BPWealth | ▲ Buy | nan | 04-May-2026 |
| CLSA | ▲ Buy | 2,100 | 04-Jun-2026 |
| Choice Equity | ▲ Buy | 2,405 | 27-Jul-2026 |
| Citigroup | ▲ Buy | 2,150 | 27-Jul-2026 |
| DAM Capital | ▲ Buy | 2,030 | 02-Apr-2026 |
| Elara Capital | ► Accumulate | 2,020 | 27-Jul-2026 |
| Emkay Global | ► Hold | 1,980 | 27-Jul-2026 |
| Geojit Financials | ▲ Buy | 2,278 | 10-Aug-2026 |
| Goldman Sachs | ▲ Buy | 1,980 | 27-Jul-2026 |
| HDFC Securities | ▲ Buy | 2,080 | 01-Jul-2026 |
| HSBC | ▲ Buy | 2,490 | 25-May-2026 |
| Jeffries | ▲ Buy | 2,445 | 25-May-2026 |
| Macguire | ▲ Outperform | 2,237 | 27-Jul-2026 |
| Moneycontrol | ► Equalweight | nan | 27-Jul-2026 |
| Morgan Stanley | ▼ Underweight | 2,015 | 29-Apr-2026 |
| Motilal Oswal | ▲ Buy | 2,250 | 27-Jul-2026 |
| Nomura | ▲ Buy | 2,500 | 25-May-2026 |
| Prabhudas Liladhar | ▲ Buy | 2,079 | 25-Jul-2026 |
Company Overview
Show Company Profile
Dalmia Bharat Limited, together with its subsidiaries, manufactures and sells cement and its related products primarily in India. It offers ordinary Portland cement (OPC), Portland pozzolana cement (PPC), Portland composite cement (PCC), and Portland slag cement (PSC) under the Dalmia DSP Cement, Dalmia Cement, Konark Cement, Dalmia Bharat Weather365, InfraPro Cement, and InstaPro Cement brand names. The company also provides Dalmia Magic Premium Skim Coat, a natural colour tone alternative to wall putty; Dalmia Magic FIBROTHICK, a versatile cement based micro-texture; Dalmia Magic Premium Ceilingfast, a fiber polymer modified cement-based plaster; Dalmia Magic INNOBOND, a versatile thin-set block jointing mortar for thin bed applications; Dalmia Magic INNOFIX, a versatile adhesive material for very thin bed applications; and Dalmia Infra Green products. It serves institutional and commercial establishments, individual home builders, and government bodies engaged in infrastructure development. The company was formerly known as Odisha Cement Limited and changed its name to Dalmia Bharat Limited in April 2019. Dalmia Bharat Limited was founded in 1939 and is headquartered in New Delhi, India.