Buy Dalmia Bharat, target price Rs 2480: Motilal Oswal

Motilal Oswal has buy call on Dalmia Bharat with a target price of Rs 2480. The current market price of Dalmia Bharat Ltd. is Rs 2155.

Time period given by analyst is one year when Dalmia Bharat Ltd. price can reach defined target.
Dalmia Bharat Ltd., incorporated in the year 2013, is a Mid Cap company (having a market cap of Rs 40190.97 Crore) operating in Cement sector.


Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 2615.00 Crore, down -21.26 % from last quarter Total Income of Rs 3321.00 Crore and up 28.88 % from last year same quarter Total Income of Rs 2029.00 Crore. Company reported net profit after tax of Rs 238.00 Crore in latest quarter.

Investment Rationale
The brokerage expects market share gains to continue, supported by ~25% capacity expansion over FY23E. It maintains FY22E/FY23E EPS estimate. Valuations are also reasonable at 11.4x FY23E EV/EBITDA

Promoter/FII Holdings
Promoters held 56 per cent stake in the company as of June 30, 2021, while FIIs held 13.1 per cent, DIIs 5.8 per cent and public and others 25.1 per cent.