The company reported a 47.5 per cent decline in its net profit to Rs 320 crore, compared to Rs 609 crore in the year-ago period.
Down 26% from 52-week high! Where is Dalmia Bharat stock headed?
Shares of Dalmia Bharat are in focus after the company posted its earnings for the fourth quarter. The company reported a 47.5 per cent decline in its net profit to Rs 320 crore, compared to Rs 609 crore in the year-ago period.
The stock tanked 3 per cent post Q4 earnings. However, the shares were trading in the green, a day after the results. It hit a 52-week high of Rs 2,428.85 on December 14, 2023, and is trading 26 per cent lower than its recent high.
In its recent report, Axis Securities expects cement demand to remain robust, driven by a continuous focus on infrastructure development. It has maintained a ‘Buy’ rating on the stock with a target price of 2,050.
“We anticipate the industry to grow at 1.2 times the GDP growth, which is projected to be at 6.5%-7% for the next several years. Given the company’s superior positioning in key markets of East and South, exposure to the West region, the government’s keen focus on infrastructure and low-cost affordable housing, increasing real estate demand, new capacity ramp-up along with the company’s cost optimization measures, we expect Dalmia to deliver stable performance going forward,” it said.
The brokerage firm noted that the company’s capacity expansion plan is progressing well, with its total cement grinding capacity expected to increase to 49.5 mtpa (excluding JP assets 9.5 mtpa) in FY25E from the current 44.6 mtpa, contributing to volume growth.
“Anticipating a volume growth CAGR of 9% over FY23-26E, the company is also enhancing its clinker capacity from the current 22.4 mtpa to 27.1 mtpa, expected to be commissioned in FY26,” it added.
About Dalmia Bharat Ltd
Dalmia Bharat Limited (including its subsidiaries) is the fourth-largest cement manufacturing company in India by installed capacity. The company’s manufacturing presence is spread across 10 states and 15 manufacturing units.
The company has also entered into a Share Purchase Agreement, Deed of Accession and Power Purchase Agreement, to acquire 18.13% of the equity share capital of O2 Renewable Energy V Private Limited, in one or more tranches to source wind power as a captive consumer for a capacity up to 11 MW.
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