Goal: ₹2,180
CMP: ₹1,700.60
Dalmia Bharat Ltd (DBL) has introduced capability enlargement plan of 6 MTPA Grinding and three.6 MTPA Clinker unit costing Rs 3,520 Cr to be met out of inside accrual and debt. The corporate will set up a 3.6 MnTPA clinker unit and a 3 MTPA grinding unit at its present Belgaum plant, Karnataka. And a brand new greenfield break up grinding unit with a capability of three MTPA in Pune, Maharashtra.
We stay constructive on the expansion prospects of the corporate and anticipate the corporate to attain a Quantity/Income/EBITDA/PAT CAGR of 9/11/22/47 per cent over FY25-FY27E. This progress shall be pushed by capability enlargement, market share positive aspects, operational efficiencies. Moreover with the rising tempo of consolidation and capability enlargement by prime gamers, their general market share is ready to extend additional to 65-70 per cent by FY27-28. This development will positively affect cement pricing, economies of scale, and provide chain effectivity.
The corporate, being among the many prime 5 gamers within the nation, is well-positioned to profit from this consolidation within the medium to long run.
The inventory is at present buying and selling at 11x/10x FY26E/FY27E EV/EBITDA and EV/tonne of $80 & $77 and with the current correction in inventory value, valuations have turned engaging. We preserve our Purchase score with a goal value
