According to The Hindu BusinessLine, brokerage firms have issued a BUY rating for Dalmia Bharat with a target price of ₹2,110 against the current market price of ₹1,651.60. The recommendation is based on the company's strong expansion plans and robust capex commitments that are expected to drive growth through 2029.
As per latest market data, Dalmia Bharat shares have experienced some volatility, declining 2.86% from the previous close of ₹1,700.20 to the current trading price of ₹1,651.60. The stock has shown a 6.39% decline over the past week, reflecting market sentiment amid ongoing industry challenges. The company maintains a market capitalization of ₹30,978.39 crore and ranks 5th in the cement sector by market cap.
As reported by The Hindu BusinessLine, the cement industry continues to face significant cost headwinds, with players unable to pass through costs amid competitive pressures. In Q2FY27E, Dalmia's volume is expected to grow in single-digits year-on-year, while realisation is estimated to be marginally down quarter-on-quarter. Unit operating expenses should spike by ₹250-300/mt on quarter, potentially denting margins to approximately ₹750/mt (versus ₹1,055/1,013 per mt q-o-q/y-o-y).
According to The Hindu BusinessLine, the management noted that central assets will become fully operational in Q3FY27 and is confident of delivering 40 per cent/60 per cent utilisation in Q4FY27/FY28E. The ongoing organic expansion in the South and West is on track and is expected to become operational in phases between Q4FY27 and Q3FY28E, leading to consolidated capacity of 67 mt.
As reported by The Hindu BusinessLine, at July-end, Dalmia emerged as the successful resolution applicant for Bhilai Jaypee Cement (BJCL) under CIRP. The acquired assets include 2.2-mt grinding unit in Bhilai (Chhattisgarh) and 1.1-mt clinker unit in Babupur (MP). The company requires final approvals from NCLT, Cuttack, along with other regulatory approvals.
According to The Hindu BusinessLine, the brokerage expects cumulative capex of ₹13,500 crore for FY27-29E and anticipates net debt to EBITDA to peak at 2.5x in FY27E. The analysis builds in volume/EBITDA CAGR of 12 per cent/11 per cent for FY26-29E. The target price of ₹2,110/share is based on 12x its September 2028E consolidated EBITDA. Recent financial data shows the company spent 3.24% of operating revenues towards interest expenses and 6.04% towards employee costs in FY26.
