Dalmia Bharat Ltd. share price target

DBL reported revenue growth of 32%YoY mainly aided by strong volume growth of 24%YoY partially supported by low base (volume growth -7% in Q4FY20) and 6.4% YoY growth in realisation. For FY21, DBL's volume growth was 7%YoY against 10-14% de-growth in industry volumes indicating market share gains. The ongoing capacity expansion and the ramp up in recent acquisitions will support future volume growth. Out of the 8MT ongoing expansion, 3.35MT has already completed and balance within 12-24 months. The company has improved its sales mix with improvement in trade sales and premium products which supports realisation. We factor revenue growth of...

Delayed announcements of new expansion projects due to covid-19. Dalmia Bharat (DALBHARA) reported Q4FY21 EBITDA above our/consensus estimates (CE) by 8%/6%. Stronger than expected realisations drove the beat,...

Demand outlook is positive given GoI's strong focus on infra & housing in the Union budget. We value DBL at 10x FY23E EV/EBITDA. Strong volumes amidst challenges DBL reported revenue growth of 18%YoY mainly aided by volume growth of 14%YoY (better than industry) on the back of demand from rural and pick up in government infra and low cost housing projects. Demand in the East region continued while demand revival were visible in South region also. Blended realisation grew by ~5% YoY. The ongoing capacity expansion and the ramp up in recent acquisitions will...

We maintain our BUY rating on the stock and revise our target price from Rs.1083 to Rs.1400 valuing the Company at 8x (earlier 7x) of FY22E EV/EBITDA , an upside of 13% from the current level.

We expect market share gains to continue, supported by ~30% capacity expansion over the next one year. DBL has announced a doubling of capacity in three years to 56mtpa. We await further clarity on the same (expect it to be brownfield and focused in the South and Northeast). We have raised our FY21E/FY22E EPS by 4% each on higher volumes. Reiterate Buy....

estimates and above consensus estimates (CE) by 4%. Performance stands out given its high exposure to highly price competitive East region (45% of its volumes) currently at near 7-year low....

Margins near lows; strong volume outlook offsets low margins Players in investment phase with focus on market share Region to see ~25mnt of new capacity in FY21e-FY23e Margins and RoEs at decade low in the East region DALBHARA gearing up to capitalise growth opportunities in East To become 3rd largest player in East in FY23e. Will maintain market leadership in North East...

Dalmia Bharat Ltd, incorporated in the year 1939, is India's fifth largest cement manufacturing company by capacity (26.50, MTPA). It has got 13 manufacturing plants spread across in 9 states and contributes around ~5% of the entire country's cement capacity. Dalmia Bharat possesses a diversified portfolio of value added brands like Dalmia Cement, Dalmia DSP, Konark Cement and a range of speciality products including SRPC, Dalmia Magic and Infragreen used in oil wells, railway sleepers. It has significant presence in Tamilnadu, Andhra Pradesh and Karnataka with...

The company reported healthy operating performance on the back of higher volume, better realization and tight cost control. The revenue/Ebitda/APAT grew by 8%/48% and 760% on YoY basis. The company recorded healthy EBITDA margin of 29% during the quarter driven by sharp contraction in variable cost

DBL reported revenue growth of 8%YoY mainly aided by volume growth of 7%YoY (better than industry, which de-grew by 11%YoY) on the back of demand from rural and pick up in government infra and low cost housing projects. As per the company, demand in the East region continued to outperform while green shoots of demand revival were visible in South region towards the end of the quarter. However, realisation growth was flat due to seasonal weakness especially in East. We increase our volume assumptions and factor revenue growth of ~5% CAGR over FY20-22E...