⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DALBHARAT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | DALBHARAT | Market Cap | 37,525 Cr. | Current Price | 2,001 ₹ | High / Low | 2,496 ₹ |
| Stock P/E | 257 | Book Value | 415 ₹ | Dividend Yield | 0.45 % | ROCE | 2.56 % |
| ROE | 2.36 % | Face Value | 2.00 ₹ | DMA 50 | 2,099 ₹ | DMA 200 | 2,094 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 1.18 % | PAT Qtr | 22.0 Cr. | PAT Prev Qtr | 14.0 Cr. |
| RSI | 37.8 | MACD | -7.22 | Volume | 4,15,671 | Avg Vol 1Wk | 4,49,197 |
| Low price | 1,601 ₹ | High price | 2,496 ₹ | PEG Ratio | -81.1 | Debt to equity | 0.00 |
| 52w Index | 44.6 % | Qtr Profit Var | 214 % | EPS | 7.68 ₹ | Industry PE | 30.0 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT rose from 14 Cr. to 22 Cr. (+214% sequential growth), but overall earnings remain small relative to market cap.
- Profit Margins: ROE at 2.36% and ROCE at 2.56% are very weak, showing poor efficiency.
- Debt Ratios: Debt-to-equity at 0.00 highlights a debt-free balance sheet.
- Cash Flows: Dividend yield at 0.45% is modest, offering limited shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 257 vs Industry PE of 30.0, indicating extreme overvaluation.
- P/B Ratio: Current Price 2,001 ₹ / Book Value 415 ₹ ≈ 4.82, premium valuation.
- PEG Ratio: -81.1, reflecting unsustainable or negative growth expectations.
- Intrinsic Value: Estimated fair value around 1,600–1,700 ₹, making current price significantly overvalued.
🏢 Business Model & Competitive Advantage
- Dalmia Bharat is a major cement manufacturer with strong presence across India.
- Competitive advantage lies in scale, brand recognition, and diversified geographic footprint.
- However, cyclical nature of cement demand and weak return ratios limit financial attractiveness.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only if price corrects to 1,600–1,700 ₹, closer to intrinsic value.
- Long-Term Holding: Risky at current valuations due to weak ROE/ROCE; suitable only for patient investors willing to tolerate volatility in cyclical cement sector.
✅ Positive
- Debt-free balance sheet provides financial stability.
- Sequential PAT growth (+214%) shows operational improvement.
- DII holdings increased (+1.18%), showing domestic institutional support.
⚠️ Limitation
- Extremely high P/E ratio (257) compared to industry average (30).
- Weak ROE (2.36%) and ROCE (2.56%) highlight poor efficiency.
- PEG ratio negative, reflecting poor growth visibility.
📉 Company Negative News
- Decline in FII holding (-0.83%) indicates reduced foreign investor confidence.
- Technical indicators (RSI 37.8, MACD -7.22) show bearish sentiment.
📈 Company Positive News
- DII holdings increased (+1.18%), showing domestic support.
- Sequential PAT growth from 14 Cr. to 22 Cr. shows improvement.
🏭 Industry
- Cement industry PE at 30.0, much lower than Dalmia Bharat’s 257, suggesting relative overvaluation.
- Industry growth supported by infrastructure expansion and housing demand in India.
🔎 Conclusion
- Dalmia Bharat is a major cement player with debt-free operations but weak efficiency metrics.
- Valuation is extremely stretched compared to industry peers, making current levels unattractive for fresh entry.
- Best suited for long-term investors only if price corrects to 1,600–1,700 ₹; cautious accumulation advised for exposure to India’s infrastructure-driven cement demand.
I can also expand on infrastructure and housing demand cycles that could influence Dalmia Bharat’s earnings trajectory if you’d like.