Buy Dalmia Bharat, target price Rs 1770: Geojit

Geojit has a buy call on Dalmia Bharat with a target price of Rs 1770 for a duration of 12 months. The current market price of Dalmia Bharat is Rs 1545.

Dalmia Bharat Ltd, incorporated in the year 1949, is a Mid Cap company with a market cap of Rs 29003.21 Crore, operating in Cement sector.

Dalmia Bharat's key Products/Revenue Segments include Income From Management Services for the year ending 31-Mar-2020.


Investment Rationale
According Geojit, barring near-term uncertainty, demand outlook is positive given GoI’s strong focus on infra & housing. Dalmia Bharat’s capacity expansion will support to continue its volume growth above industry. Geojit values the company at 10x FY23 EV/EBITDA to arrive at a revised target price of Rs 1,770 (Rs 1,650 earlier), and maintains buy rating.

Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 3321 Crore, up 14.40 per cent from last quarter's Total Income of Rs 2903 Crore and up 30.80 per cent from last year same quarter's Total Income of Rs 2539.00 Crore. Company has reported a net profit after tax of Rs 640 Crore in the latest quarter.

Promoter/FII Holdings
Promoters held 56.07 per cent stake in the company as of Dec 30, 2020, while FIIs held 13.53 per cent, DIIs 3.93 per cent and public and others 26.47 per cent.