Dalmia Bharat -- Ambitious growth plan matched by premium valuation

The management of Dalmia Bharat has executed its growth strategy well and is ambitiously aiming to grow at a 15-20 per cent CAGR over the long term

Sachin Pal
July 30, 2021 / 09:22 AM IST
Dalmia Bharat -- Ambitious growth plan matched by premium valuation

Representative Image

PRO Only Highlights
-  Quarterly performance largely backed by improved realisations
-  Medium-term triggers China plus and protectionist measures for tyre industry
-  Valuations not inexpensive; but improved medium-term outlook

Dalmia Bharat, India’s fourth-largest cement maker, delivered a muted set of earnings in the June quarter.  The volume growth significantly lagged its key domestic peers, but the margins held firm despite cost headwinds. Quarterly result highlights (image) Dalmia Bharat’s quarterly revenues declined 24 per cent quarter-on-quarter (QoQ) to 4.9 MT as business activity was hampered by the second Covid wave. Moreover, the company lost some market share due to maintenance related plant shutdowns. While volumes came in a bit soft, the...