Cement stock to buy today: Dalmia Bharat Limited, a leading cement manufacturing company, reported its consolidated financial results for the quarter and full year ended March 31, 2025, on April 28. The company’s operating performance improved during the quarter, with EBITDA increasing 13.7% year-on-year to Rs 902 crore from Rs 793 crore a year ago. The company’s board has recommended a final dividend of Rs 5 per equity share, subject to approval by shareholders at the forthcoming annual general meeting.
HDFC Securities is bullish on Dalmia Bharat Limited. Let’s explore the latest target price along with the reasons behind the buy call.
The brokerage firm, HDFC Securities, maintains a buy call on Dalmia Bharat Limited with a target price of Rs 2,080. Reasons being:
1. Industry demand grew 6-7% year on year in Q1FY27; Dalmia expects to match industry growth.
2. Q1FY27 volume growth is estimated at 10% year on year; net selling rate improved by over Rs 10 per bag quarter on quarter, partly offsetting energy and packaging cost increases.
4. All acquired plants are targeted to become operational by the end of Q2FY27; acquired assets are to operate at 40-50% utilisation in FY27-28.
5. Ongoing south and west expansions are on track; total capacity to reach 67 mn tonnes by Q3FY28.
6. Net debt to EBITDA to rise to 2.27x in FY27 from 1x in FY26 due to acquisition; expected to cool to 2.1x in FY28.
7. FY27 and FY28 profit after tax estimates are cut by 32% and 20%, respectively, on higher capital charges and a gradual ramp-up of acquired assets.
8. Valued at 12x FY28 estimated consolidated EBITDA.
Revenue rose 3.8% year-on-year to Rs 4,245 crore, compared with Rs 4,091 crore in the corresponding quarter last year.
Operating performance improved during the quarter, with EBITDA increasing 13.7% year-on-year to Rs 902 crore from Rs 793 crore a year ago.
EBITDA margin expanded to 21.2%, compared with 19.4% in the same period last year. However, net profit declined 11% year-on-year to Rs 387 crore, compared with Rs 435 crore in the year-ago quarter.
Dalmia Bharat dividend 2026
The company’s board has recommended a final dividend of Rs 5 per equity share, subject to approval by shareholders at the forthcoming annual general meeting.
Dalmia Bharat share price today
At the time of writing this report (8:42 AM), during the pre-market session, shares of Dalmia Bharat Ltd were trading 0.07 per cent lower at Rs 1699.75, compared with their previous closing price of Rs 1,701.00.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
