DALBHARAT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.2

📈 Positive

• 💰 Zero debt (Debt-to-equity: 0.00) ensures financial resilience and low financial risk.
• 📈 EPS of ₹6.98 supports earnings visibility, albeit modest.
• 📈 DII and FII holdings increased (0.44% and 0.52% respectively), indicating renewed institutional interest.
• 📉 Trading near 52-week low (₹1,601), offering potential value entry point.

⚠️ Limitation

• 📉 Extremely high P/E of 300 vs industry average of 38.9 suggests severe overvaluation.
• 📉 Negative PEG ratio (-94.6) implies valuation is not supported by growth.
• 📉 Low ROCE (2.56%) and ROE (2.36%) reflect poor capital efficiency.
• 📉 MACD at -51.6 and RSI at 29.0 indicate bearish technical momentum.
• 📉 Trading below DMA50 and DMA200 (₹2,238 and ₹2,115), confirming downward trend.

📰 Company Negative News

• 📉 Quarterly PAT dropped from ₹33.0 Cr. to ₹14.0 Cr., showing margin pressure.
• 📉 Volume below 1-week average suggests reduced investor interest.

🌟 Company Positive News

• 📈 Quarterly profit variation of 40% shows signs of recovery despite weak base.
• 📈 Institutional accumulation from both DII and FII indicates long-term confidence.

🏗️ Industry

• 🏗️ DALBHARAT operates in the cement and building materials sector, benefiting from infrastructure and housing demand.
• 📊 Industry P/E of 38.9 reflects moderate growth expectations and cyclical exposure to construction trends.

🧭 Conclusion

• 📌 Suggested entry zone: ₹2,000–₹2,050, near support and 52-week low for better margin of safety.
• 🕰️ Long-term holding cautious due to valuation concerns and weak return metrics.
• ⚖️ Monitor earnings consistency and technical reversal before aggressive accumulation.