NSEI:DALBHARAT

Stock Analysis Report

Executive Summary

Dalmia Bharat Limited manufactures and sells clinker and cement products.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Dalmia Bharat's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DALBHARAT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

DALBHARAT

-10.5%

IN Basic Materials

-3.0%

IN Market


1 Year Return

-49.1%

DALBHARAT

-29.3%

IN Basic Materials

-29.2%

IN Market

Return vs Industry: DALBHARAT underperformed the Indian Basic Materials industry which returned -29.3% over the past year.

Return vs Market: DALBHARAT underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

DALBHARATIndustryMarket
7 Day-1.4%-10.5%-3.0%
30 Day-37.0%-30.3%-26.9%
90 Day-36.3%-25.5%-28.5%
1 Year-48.9%-49.1%-28.9%-29.3%-27.7%-29.2%
3 Yearn/a-28.4%-29.7%-15.2%-19.9%
5 Yearn/a-4.9%-7.8%-3.1%-8.1%

Price Volatility Vs. Market

How volatile is Dalmia Bharat's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dalmia Bharat undervalued compared to its fair value and its price relative to the market?

45.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DALBHARAT (₹503.75) is trading below our estimate of fair value (₹919.66)

Significantly Below Fair Value: DALBHARAT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DALBHARAT is poor value based on its PE Ratio (22.9x) compared to the Basic Materials industry average (10.1x).

PE vs Market: DALBHARAT is poor value based on its PE Ratio (22.9x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: DALBHARAT is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: DALBHARAT is overvalued based on its PB Ratio (0.9x) compared to the IN Basic Materials industry average (0.6x).


Next Steps

Future Growth

How is Dalmia Bharat forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

38.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DALBHARAT's forecast earnings growth (38.3% per year) is above the savings rate (6.5%).

Earnings vs Market: DALBHARAT's earnings (38.3% per year) are forecast to grow faster than the Indian market (19.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DALBHARAT's revenue (11.5% per year) is forecast to grow faster than the Indian market (9.1% per year).

High Growth Revenue: DALBHARAT's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DALBHARAT's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Dalmia Bharat performed over the past 5 years?

22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DALBHARAT has a large one-off loss of ₹3.5B impacting its December 31 2019 financial results.

Growing Profit Margin: DALBHARAT's current net profit margins (4.2%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: DALBHARAT's earnings have grown significantly by 22.2% per year over the past 5 years.

Accelerating Growth: DALBHARAT's earnings growth over the past year (103.8%) exceeds its 5-year average (22.2% per year).

Earnings vs Industry: DALBHARAT earnings growth over the past year (103.8%) exceeded the Basic Materials industry 21.9%.


Return on Equity

High ROE: DALBHARAT's Return on Equity (4.5%) is considered low.


Next Steps

Financial Health

How is Dalmia Bharat's financial position?


Financial Position Analysis

Short Term Liabilities: DALBHARAT's short term assets (₹47.1B) exceed its short term liabilities (₹43.2B).

Long Term Liabilities: DALBHARAT's short term assets (₹47.1B) do not cover its long term liabilities (₹48.7B).


Debt to Equity History and Analysis

Debt Level: DALBHARAT's debt to equity ratio (39%) is considered satisfactory.

Reducing Debt: DALBHARAT's debt to equity ratio has reduced from 99.2% to 39% over the past 5 years.

Debt Coverage: DALBHARAT's debt is well covered by operating cash flow (66.6%).

Interest Coverage: DALBHARAT's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

Inventory Level: DALBHARAT has a high level of physical assets or inventory.

Debt Coverage by Assets: DALBHARAT's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is Dalmia Bharat's current dividend yield, its reliability and sustainability?

0.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DALBHARAT's dividend (0.4%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: DALBHARAT's dividend (0.4%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

Stable Dividend: DALBHARAT is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: DALBHARAT is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DALBHARAT is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DALBHARAT's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average board tenure


CEO

Puneet Dalmia (47yo)

no data

Tenure

₹77,800,000

Compensation

Mr. Puneet Yadu Dalmia, B.Tech., M.B.A. has been Managing Director at Odisha Cement Limited since October 30, 2018. Mr. Dalmia serves as Director at TVS Capital Funds Limited. He is also the Co-Chairman o ...


CEO Compensation Analysis

Compensation vs Market: Puneet's total compensation ($USD1.03M) is above average for companies of similar size in the Indian market ($USD664.47K).

Compensation vs Earnings: Puneet's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Puneet Dalmia
MD, CEO & Executive Directorno data₹77.80mno data
Gautam Dalmia
MD & Executive Director4.92yrs₹62.40mno data
Jayesh Doshi
CFO & Whole Time Director1.42yrs₹61.30m0.026% 24.9m
Yadu Dalmia
Non-Executive Non-Independent Director & MD1.42yrs₹200.00k0.000010% 9.7k
Jai Dalmia
Non-Executive Non-Independent Director & MD1.42yrs₹200.00k0.000010% 9.7k
Virendra Jain
Independent Non Executive Director1.42yrs₹2.70mno data
Pradip Khaitan
Independent Chairmanno data₹4.50mno data
Niddodi Rajan
Director0.58yrno datano data
Sudha Pillai
Independent Non-Executive Director4.92yrs₹1.50mno data

1.4yrs

Average Tenure

68yo

Average Age

Experienced Board: DALBHARAT's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dalmia Bharat Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dalmia Bharat Limited
  • Ticker: DALBHARAT
  • Exchange: NSEI
  • Founded: 2013
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹97.203b
  • Shares outstanding: 192.96m
  • Website: https://www.dalmiabharat.com

Number of Employees


Location

  • Dalmia Bharat Limited
  • Hansalaya Building
  • 11th & 12th Floor
  • New Delhi
  • Delhi
  • 110001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
542216BSE (Mumbai Stock Exchange)YesNew Equity SharesININRDec 2018
DALBHARATNSEI (National Stock Exchange of India)YesNew Equity SharesININRDec 2018

Biography

Dalmia Bharat Limited manufactures and sells clinker and cement products. It provides Portland slag cement, Portland pozzolana cement, and Portland composite cement. The company also offers refractory products; sugar products; and management consultancy services. In addition, it generates power through operating alternative fuels, biomass-based fuels, and waste heat. The company operates in India, China, Bangladesh, Nepal, Sri Lanka, Myanmar, Bhutan, Italy, Spain, the United Kingdom, Germany, Turkey, Russia, and internationally. The company was formerly known as Odisha Cement Limited and changed its name to Dalmia Bharat Limited in April 2019. Dalmia Bharat Limited was incorporated in 2013 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:32
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.