DALBHARAT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | DALBHARAT | Market Cap | 35,756 Cr. | Current Price | 1,906 ₹ | High / Low | 2,496 ₹ |
| Stock P/E | 247 | Book Value | 420 ₹ | Dividend Yield | 0.47 % | ROCE | 2.17 % |
| ROE | 1.84 % | Face Value | 2.00 ₹ | DMA 50 | 1,952 ₹ | DMA 200 | 2,034 ₹ |
| Chg in FII Hold | -0.77 % | Chg in DII Hold | 1.26 % | PAT Qtr | 74.8 Cr. | PAT Prev Qtr | 22.0 Cr. |
| RSI | 46.4 | MACD | 8.43 | Volume | 2,86,130 | Avg Vol 1Wk | 4,88,538 |
| Low price | 1,717 ₹ | High price | 2,496 ₹ | PEG Ratio | -26.5 | Debt to equity | 0.03 |
| 52w Index | 24.3 % | Qtr Profit Var | -2.88 % | EPS | 7.52 ₹ | Industry PE | 30.8 |
📊 Dalmia Bharat (DALBHARAT) shows weak fundamentals despite its large market cap of ₹35,756 Cr. ROE (1.84%) and ROCE (2.17%) are extremely low, indicating poor efficiency. Debt-to-equity at 0.03 reflects financial stability, but EPS of ₹7.52 is modest relative to valuation. Dividend yield of 0.47% adds limited shareholder value. Quarterly PAT improved sequentially (22 Cr → 74.8 Cr), but profit variation (-2.88%) highlights inconsistency. Valuation is severely stretched with P/E (247) compared to industry average (30.8), while PEG ratio (-26.5) signals poor growth-adjusted value. Technicals remain weak with RSI (46.4) and price trading below both 50 DMA (1,952 ₹) and 200 DMA (2,034 ₹).
🎯 Entry Zone: 1,750 ₹ – 1,800 ₹ (closer to support levels)
📌 Long-Term Holding: Risky due to weak efficiency and extreme overvaluation. Suitable only for short-term momentum trades. Long-term investors should wait for valuation correction closer to 1,600–1,700 ₹.
Positive
- Low debt-to-equity (0.03) ensures financial stability.
- Sequential PAT improvement (22 Cr → 74.8 Cr).
- DII holdings increased (+1.26%), showing domestic institutional support.
- MACD positive (8.43) indicates short-term bullish momentum.
Limitation
- Extremely high P/E (247) vs industry average (30.8).
- Very weak ROE (1.84%) and ROCE (2.17%).
- Negative PEG ratio (-26.5) suggests poor growth-adjusted valuation.
- Decline in FII holdings (-0.77%) shows reduced foreign investor confidence.
- Price trading below DMA levels, reflecting weak technical trend.
Company Negative News
- No major negative news reported; valuation and efficiency remain primary concerns.
Company Positive News
- Sequential PAT growth shows operational improvement.
- DII inflows reflect domestic institutional confidence.
Industry
- Industry P/E (30.8) is far lower than DALBHARAT’s P/E (247), showing severe overvaluation.
- Cement sector remains cyclical, with demand linked to infrastructure and housing growth.
Conclusion
⚠️ Dalmia Bharat is financially stable with low debt but faces extremely weak efficiency and severe overvaluation. Entry around 1,750–1,800 ₹ may suit short-term traders, but long-term investors should avoid until valuations correct closer to 1,600–1,700 ₹. Fundamentals do not justify sustained compounding at current levels.
This structured HTML report highlights DALBHARAT’s weak efficiency and extreme overvaluation despite its scale. If you’d like, I can prepare a peer benchmarking overlay against other cement players like Ultratech or Shree Cement to show relative positioning. Would you like me to build that next?