DALBHARAT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 2.3

📊 Core Financials

• Revenue & Profitability: PAT dropped to 14 Cr. from 33 Cr., showing weak earnings momentum.
• Margins: ROE at 2.36% and ROCE at 2.56% reflect poor efficiency and profitability.
• Debt Ratios: Debt-to-equity at 0.00 — debt-free balance sheet ensures financial stability.
• Cash Flows: Dividend yield of 0.44% provides minimal shareholder returns.

💹 Valuation Indicators

• P/E Ratio: 288 vs Industry PE of 33.2 — extremely overvalued.
• P/B Ratio: Current Price 2,013 ₹ / Book Value 415 ₹ ≈ 4.85, premium valuation.
• PEG Ratio: -90.9 — negative due to declining earnings growth, signaling caution.
• Intrinsic Value: Current valuation unjustified given weak fundamentals.

🏢 Business Model & Competitive Advantage

• Operates in cement and building materials, benefiting from infrastructure demand.
• Competitive advantage lies in established brand and distribution network, but profitability is under pressure.
• Institutional sentiment mixed: FII holdings increased (+0.52%), DII holdings also up (+0.44%).

📈 Technical & Entry Zone

• DMA 50: 2,078 ₹ | DMA 200: 2,089 ₹ — stock trading near long-term averages.
• RSI: 47.6 — neutral zone.
• MACD: -5.42 — bearish momentum.
• Entry Zone: Attractive only near 1,600–1,700 ₹ if fundamentals improve.
• Long-Term Holding: Risky unless profitability and return ratios strengthen significantly.

✅ Positive

• Debt-free balance sheet (Debt-to-equity 0.00).
• Institutional investors (FII/DII) marginally increased holdings.
• Strong industry demand drivers from infrastructure and housing sectors.

⚠️ Limitation

• Extremely high P/E ratio (288) compared to industry average.
• Weak ROE (2.36%) and ROCE (2.56%).
• Dividend yield of 0.44% offers limited shareholder returns.

📉 Company Negative News

• PAT dropped from 33 Cr. to 14 Cr., showing earnings weakness.
• Profitability ratios remain below industry benchmarks.

📈 Company Positive News

• Debt-free balance sheet provides financial resilience.
• Institutional investors increased holdings slightly (FII +0.52%, DII +0.44%).

🏭 Industry

• Industry PE at 33.2 — sector trades at moderate valuations.
• Cement industry benefits from infrastructure growth but faces cyclical demand and margin pressures.

🔎 Conclusion

DALBHARAT is financially stable with no debt but suffers from weak profitability and extremely high valuations. Entry is advisable only near 1,600–1,700 ₹, with cautious long-term holding. Improvement in earnings and return ratios will be critical for sustainable upside.