HDFC Securities is bullish on Dalmia Bharat has recommended buy rating on the stock with a target price of Rs 930 in its research report dated June 15, 2020.
HDFC Securities' research report on Dalmia Bharat
We retain BUY on Dalmia Bharat with a TP of Rs 930. We like the co for its distribution strength across its markets and healthy balance sheet. Covid lockdown in Mar-20 and weak pricing pulled down consol rev/EBITDA/APAT 11/16/86% YoY. A weak 4Q slowed FY20 rev/EBITDA growth to 1/9% YoY. FY20 unitary EBITDA remained buoyant at Rs 1,091/MT (+6% YoY) led by lower input costs and asset sweating. APAT fell 23% YoY on higher dep and tax outgo. Despite large capex in FY20, Dalmia reduced net debt ~11% YoY.
Outlook
We maintain BUY with unchanged TP of Rs 930 (10x its FY22 EBITDA, in-line its five year mean). Our TP implies replacement cost of Rs 5.6bn/MT.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Special Offer: Subscribe to Moneycontrol PRO at ₹1 per day for the first year. Coupon code: PRO365. Offer available on desktop & android only. *T&C Apply
Read More
