DALBHARAT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.6

📊 Core Financials

Earnings & Profitability: EPS of ₹6.77 and PAT of ₹33 Cr this quarter (down from ₹77 Cr) reflect significant earnings volatility. ROCE at 2.56% and ROE at 2.36% are weak, indicating poor capital efficiency.

Debt Profile: Debt-to-equity of 0.00 — completely debt-free, which is a major strength in a capital-intensive industry.

Cash Flow: While not explicitly stated, low profitability suggests cash flows may be under pressure despite a clean balance sheet.

💰 Valuation Indicators

Metric Value Insight

P/E Ratio 362 Extremely overvalued vs. industry PE (47.3)

P/B Ratio ~5.87 High premium over book value

PEG Ratio -114 Negative PEG flags serious growth concerns

Dividend Yield 0.37% Minimal income play

Valuation is highly stretched and not supported by current earnings or return metrics.

🧱 Business Model & Competitive Advantage

Dalmia Bharat Ltd. is a major player in the cement and building materials sector. Its strengths include

Strong brand presence in South and East India

Integrated operations and sustainability initiatives

Strategic expansion into premium cement and blended products

Despite weak quarterly performance, the company has delivered 206% returns over five years with a 5.2% profit margin, positioning it as a potential long-term multibagger

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📈 Technical & Sentiment Indicators

RSI: 68.8 – Approaching overbought territory.

MACD: 41.8 – Strong bullish momentum.

Volume Weakness – Below weekly average, suggesting reduced participation.

DMA 50 & 200: Price is above both, confirming medium-term strength.

Short-term targets for 2025 range from ₹2,483 to ₹2,569, with stop-loss levels around ₹2,315–₹2,371

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. Analysts like Motilal Oswal have set a target of ₹2,660, indicating modest upside from current levels

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💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹2,300–₹2,350, near DMA 50 and technical support.

Current Price ₹2,452: Slightly above ideal entry, but still within accumulation zone for momentum traders.

🕰️ Long-Term Holding

Hold with Caution or Accumulate on Dips: Strong historical returns and zero debt make it a potential long-term play, but weak ROE/ROCE and high valuation warrant disciplined entry.

Watch Earnings Recovery & Institutional Sentiment: Recent FII outflow and sharp PAT decline suggest short-term caution.

You can explore Dalmia Bharat’s multiyear price targets and technical forecast or review Finosauras’s institutional holdings and valuation breakdown for deeper insights. Let me know if you'd like a peer comparison with UltraTech or JK Cement.

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stockpricearchive.com

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www.finosauras.com

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