DALBHARAT - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Dalmia Bharat Ltd (DALBHARAT) Fundamental Rating: 3.6

🧾 Core Financial Health

Profit Metrics

EPS: ₹49.8 ➜ robust profitability per share

PAT Qtr: ₹381 Cr vs ₹435 Cr ➜ QoQ decline, but recent growth of 70.7% YoY suggests cyclical momentum

Return Ratios

ROE: 4.15%, ROCE: 5.58% ➜ relatively low — indicates underutilization of capital

Debt Profile

Debt-to-equity: 0.33 ➜ controlled leverage — not overly aggressive

Dividend Yield

0.41% ➜ modest — not a high income play

🧠 Takeaway: Mixed fundamentals — strong EPS but low return ratios make this a value-watch candidate rather than a growth leader.

💸 Valuation Insights

Metric Value Interpretation

P/E Ratio 44.6 slightly below industry PE (51.1) ➜ fair valuation

P/B Ratio ~2.37 (₹2,199 / ₹926) ➜ reasonable vs asset base

PEG Ratio -21.9 Negative — caution: could suggest earnings contraction

📌 Conclusion: Priced modestly for its sector, but PEG signals a disconnect between valuation and growth.

🏗️ Business Model & Competitive Position

Sector: Cement and construction materials

Strengths

Presence in East, South & Northeast India — infrastructure-led demand

ESG initiatives and carbon reduction goals ➜ forward-looking strategy

Challenges

Volatile input costs (coal, pet coke)

Price competition from regional players

Low ROCE suggests challenges in margin optimization

📈 Institutional Sentiment

FII ↓ 0.06% ➜ foreign investors trimming slightly

DII ↑ 0.94% ➜ positive domestic outlook

📉 Technical Pulse

RSI: 51.4 ➜ neutral zone — balanced momentum

MACD: 29.9 ➜ bullish crossover — short-term optimism

Price above DMA 50 & DMA 200 ➜ technical support confirmed

✅ Suggested Entry Zone: ₹2,110–₹2,160 ⚠️ Accumulate on dips — avoid chasing near highs around ₹2,343 unless breakout is confirmed.

📅 Long-Term Investment View

🎯 Best for

Investors betting on India’s infrastructure & housing growth

Those with mid- to long-term horizon willing to accept volatility

🔎 Monitor

Margin expansion strategies

Cement pricing trends & capacity utilization

Government infra outlay in upcoming budgets

Need a head-to-head with Ultratech Cement or Shree Cement to see who’s truly laying the strongest foundation? I can get that ready in moments.

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