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DALBHARAT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | DALBHARAT | Market Cap | 36,388 Cr. | Current Price | 1,940 ₹ | High / Low | 2,496 ₹ |
| Stock P/E | 249 | Book Value | 415 ₹ | Dividend Yield | 0.46 % | ROCE | 2.56 % |
| ROE | 2.36 % | Face Value | 2.00 ₹ | DMA 50 | 2,018 ₹ | DMA 200 | 2,073 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 1.18 % | PAT Qtr | 22.0 Cr. | PAT Prev Qtr | 14.0 Cr. |
| RSI | 43.3 | MACD | -62.4 | Volume | 1,68,445 | Avg Vol 1Wk | 2,07,594 |
| Low price | 1,680 ₹ | High price | 2,496 ₹ | PEG Ratio | -78.6 | Debt to equity | 0.00 |
| 52w Index | 31.8 % | Qtr Profit Var | 214 % | EPS | 7.68 ₹ | Industry PE | 28.2 |
📊 Core Financials
- Revenue Growth: PAT improved (₹22 Cr vs ₹14 Cr), but overall earnings remain weak
- Profit Margins: EPS ₹7.68, very modest profitability
- Debt Ratio: Debt-free (Debt-to-Equity 0.00)
- Cash Flows: Stable due to low leverage, but limited profit generation
- Return Metrics: ROCE 2.56%, ROE 2.36% — poor efficiency
💹 Valuation Indicators
- P/E Ratio: 249 (far above industry PE of 28.2, extremely overvalued)
- P/B Ratio: ~4.67 (premium valuation)
- PEG Ratio: -78.6 (negative, weak growth outlook)
- Intrinsic Value: Current price ₹1,940 is expensive relative to fundamentals
🏢 Business Model & Competitive Advantage
- Cement and building materials company with strong regional presence
- Debt-free balance sheet provides resilience
- Dividend yield of 0.46% is modest
- Competitive advantage limited due to weak profitability and efficiency
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹1,700–₹1,850 range (only for high-risk investors)
- Long-Term Holding: Risky due to stretched valuation and poor return metrics
- Guidance: Suitable only for speculative investors betting on turnaround
✅ Positive
- Debt-free company ensures financial stability
- PAT growth from ₹14 Cr to ₹22 Cr shows improvement
- DII holdings increased (+1.18%), showing domestic investor confidence
⚠️ Limitation
- Extremely high P/E ratio compared to industry
- Weak ROE and ROCE indicate poor efficiency
- Dividend yield is modest
📰 Company Negative News
- Decline in FII holdings (-0.83%) shows reduced foreign investor confidence
- Stock trading below DMA 50 & DMA 200, showing weak momentum
🌟 Company Positive News
- Quarterly PAT growth of 214% (₹14 Cr → ₹22 Cr)
- DII holdings increased, showing domestic support
🏦 Industry
- Cement and building materials sector with cyclical demand
- Industry PE at 28.2, DALBHARAT trades far above this, showing extreme overvaluation
- Sector growth supported by infrastructure development but profitability remains key
🔎 Conclusion
- DALBHARAT is debt-free but has weak efficiency metrics
- Valuation is extremely stretched compared to industry peers
- Entry near ₹1,700–₹1,850 only suitable for high-risk investors
- Best suited for speculative portfolios, not conservative long-term holdings