Sharekhan's research report on Dalmia Bharat
In Q4FY2023, the company reported an in-line operational performance aided by strong 13% y-o-y volume growth and sequentially flat opex/tonne. Reported net profits were boosted by income from an associate firm. Its cement capacity is expected to increase to 46.6 MTPA by FY2024 from current 41.1 MTPA excluding JP Associates’ cement assets and deferment of 2.5 MTPA Bihar unit. Company stays committed to 110-130 MTPA capacity by 2031. Management remain bullish on decadal cement demand growth expecting to outpace industry growth rates. Power & fuel costs slated to tread lower q-o-q in Q1FY2024 and Q2FY2024.
Outlook
We maintain a Buy on Dalmia Bharat with an unchanged PT of Rs. 2,250, considering its strong growth potential, led by capacity additions.
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