IndiaNivesh Securities initiates coverage on Dalmia Bharat with reduce, target price Rs 818

IndiaNivesh Securities has initiated coverage on Dalmia Bharat in the long term with a reduce rating and set a target price of Rs 818. Shares of Dalmia Bharat declined 1.95% to Rs 888 on Wednesday while the BSE Sensex rose 161.83 points to 36,724.74.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 2537.00 crore, down -10.73 % from last quarter sales of Rs 2842.00 crore and up 7.14 % from last year same quarter sales of Rs 2368 crore, The company has reported net profit after tax of Rs 152.00 Crore in latest quarter.


Investment Rationale
Two main concerns cited by the brokerage are lowest return on equity and return on capital employed (RoCE) and highest exposure to eastern India. No major improvement in RoCE is expected till FY 2021 due to decline in realisation in the eastern region, said the brokerage.