NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Dalmia Bharat Ltd.'s Q1 FY25 Ebitda grew ~8% YoY to Rs 6.7 billion (24% beat). Ebitda/tonne was up 2% YoY to Rs 904 (versus estimate Rs 712). Adjusted profit (adjusted for a one-time provision of Rs 840 million post-tax) jumped ~83% YoY to Rs 2.3 billion (versus estimate Rs 1.0 billion).
The intermittent capacity target of 75 million tonnes per annum is deferred to FY28 versus the previous timeline of FY27. Further, management will share a detailed expansion plan, including the location and timeline of commissioning, after 12 months. The company has brownfield expansion opportunities and limestone mines in Central and North. It identified areas of sustainable cost reduction of Rs 150200/tonne in the next three years through a reduction in variable costs.
We believe the extension of the medium-term capacity target, continuing weak pricing in the core markets, and uncertainty over the continuity of the tolling arrangement with JPA will be near-term challenges for stock performance.
We maintain our FY25-27 earnings estimates. We value Dalmia Bharat at 12 times June-26E enterprise value/Ebitda to arrive at our target price of Rs 2,300. Reiterate Buy.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
