Dalmia Bharat - Near-Term Challenges To Continue: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.We maintain a BUY rating on Dalmia Bharat Ltd. with a lower target price of Rs 2,205/share (12 times its Sep-26E consolidated Ebitda). We hosted its management for non-deal roadshows in Mumbai. The company is battling multiple challenges in the near term as it delivered lower than guided volume offtake in FY24 and also suffered on margins as it tried to regain some of the lost volumes. It is also disappointed that its near-certain acquisition of Jaiprakash Associates Ltd.’s assets (at least 5.4 million metric tonne cement capacity) has slipped away as the consortium of lenders pushed JPA to NCLT. This has practically killed Dalmia’s chance of acquiring the cement assets as JPA would be sold off en-bloc now. Dalmia would also let go of the current tolling arrangement in the central region, as it would not be viable to service this market from its existing eastern plants. These have both lowered the company’s volume growth outlook and also derailed its target of 75 million metric tonne by FY27. However, not all is lost. Dalmia continues to scale up its blended cement production and green energy consumption in its pursuit to further tighten its industry-leading operating cost structure and reduce its carbon footprint. We lower our volume and margin estimates, factoring in the loss of the JPA deal and weak cement pricing in H1 FY25. While we estimate FY25E profitability to remain muted (4% YoY volume growth and flattish unit Ebitda YoY), we expect Dalmia’s volume and margin performance to recover from FY26E onwards..Click on the attachment to read the full report:.UltraTech Cement - Journey Of Growth, Scale, Leadership: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dalmia Bharat - Near-Term Challenges To Continue: HDFC Securities

Maintain Buy with lower target price as we also cut valuation multiple

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Dalmia Bharat - Near-Term Challenges To Continue: HDFC Securities

Maintain Buy with lower target price as we also cut valuation multiple

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