Dalmia Bharat - Ambitious Growth Plans, Execution In Focus: Motilal Oswal

Motilal Oswal Report

Dalmia Bharat Ltd. has underperformed the Bombay Stock Exchange sensex and most cement stocks under our coverage in the last six months (Exhibit 3) mainly due to a delay in the acquisition of JPA’s cement assets (announced in December ’22) and a slowdown in cement demand in the eastern region, in our view.

However, we are optimistic about the company’s long-term outlook, given:

1. Its plan to increase capacity to 110-130 million tonnes per annum  at a 14-17% compound annual growth rate by 2031;

2. Focus on sustainable growth through various initiatives such as higher blended cement, green energy mix; and

3. Strong balance sheet with the target to maintain a net debt-to-Ebitda ratio of less than 2 times.

We reiterate our 'Buy' rating on the stock with a target price of Rs 2,800 (based on September ’25E enterprise value/Ebitda).

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