Hold Dalmia Bharat, target price Rs 1750: Emkay Global Financial Services

Emkay Global Financial Services has hold call on Dalmia Bharat with a target price of Rs 1750.The current market price of Dalmia Bharat is Rs 1874.65.

Dalmia Bharat, incorporated in the year 2013, is a Mid Cap company (having a market cap of Rs 35622.11 Crore) operating in Cement sector.

Dalmia Bharat key Products/Revenue Segments include Income From Management Services for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 3390.00 Crore, up 12.66 % from last quarter Total Income of Rs 3009.00 Crore and up 22.78 % from last year same quarter Total Income of Rs 2761.00 Crore. Company has reported net profit after tax of Rs 216.00 Crore in latest quarter.

The company’s top management includes Mr.Pradip Kumar Khaitan, Mr.Puneet Yadu Dalmia, Mr.Gautam Dalmia, Dr.Niddodi Subrao Rajan, Mr.Yadu Hari Dalmia, Mrs.Sudha Pillai, Mr.Virendra Singh Jain. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 19 Crore shares outstanding.

Investment Rationale
The brokerage broadly maintains FY24E-25E EBITDA and revise the Mar-24E target price to Rs1,750/share (vs Rs1,600 earlier), post the half-yearly roll-over. Emkay's DCF-based TP implies one-year forward EV/EBITDA of 9x.

In the absence of near-term catalysts, Emkay maintains a HOLD rating on the stock.

Promoter/FII Holdings
Promoters held 55.86 per cent stake in the company as of 31-Dec-2022, while FIIs owned 12.43 per cent, DIIs 8.07 per cent.