Dalmia Bharat Share Price Falls by Over 4%

Dalmia Bharat Share Price Falls by Over 4%

VoM News Desk | October 17, 2023 | 12:56 PM IST | Breaking News | Follow on Google News

Dalmia Bharat Share Price Falls by Over 4%

Dalmia Bharat Share Price Falls by Over 4%

Shares of Dalmia Bharat, one of India’s leading cement companies, witnessed a significant drop in early trading on October 17, with the stock falling over 4%. The decline comes after the stock had opened at ₹2,340.15, compared to the previous closing price of ₹2,322.25. It reached an intraday low of ₹2,227, marking a 4.10% decrease. As of 10:55 am, Dalmia Bharat’s share price was down by 3.97% at ₹2,230.

Impressive Year-Over-Year Gains Despite Recent Dip

Over the past year, Dalmia Bharat’s share price has made significant gains, rising by approximately 48%. This notable performance has outshone the benchmark Sensex, which has seen a growth of approximately 14% in the same period.

Market Reaction to Quarterly Earnings

Despite experiencing a drop in share price, the majority of brokerage firms have expressed a positive outlook on Dalmia Bharat’s stock following the release of the company’s quarterly earnings. In its Q2 FY24 results, the company reported a 6.6% year-on-year increase in volume, reaching 6.2 million metric tons. Key financial figures included a 6% YoY revenue increase to ₹3,149 crore and a significant 46% YoY rise in EBITDA per ton to ₹955. The company’s net debt/EBITDA ratio stood at 0.59 times.

Dalmia Bharat’s performance was attributed to lower fuel costs, increased use of renewable energy sources, and improved key performance indicators. The company’s interim dividend stood at ₹4 per share.

Positive Assessments from Brokerage Firms

Several global brokerage firms expressed optimism regarding Dalmia Bharat. Jefferies maintained a “buy” rating and raised the target price to ₹2,680. Kotak Institutional Equities, a domestic brokerage firm, also held a positive view and increased the target price to ₹2,350. Meanwhile, HDFC Securities maintained its “buy” rating with an unchanged target price of ₹2,560.

HDFC Securities highlighted that the company’s cost savings on fuel and freight, coupled with the rebound in unit EBITDA, position Dalmia Bharat favorably. The firm estimated a 15% volume CAGR for the company during FY23-26, supported by ongoing expansions.

Nirmal Bang, another brokerage firm, maintained a “buy” rating with a revised target price of ₹2,908.

Disclaimer: This is a market report provided for informational purposes and should not be considered as investment advice. The article by VoM does not endorse or recommend any particular investment. Before making any investment, you should conduct your own research and seek the advice of a qualified financial or investment advisor.

VoM News Desk

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