Check Before You Invest : Dalmia Bharat Ltd

Snapshot

Q.1 Which industry/sub-sector does Dalmia Bharat Ltd belong to?

Dalmia Bharat Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q.2 Is Dalmia Bharat Ltd a good quality company?

Dalmia Bharat Ltd is a weak quality company, based on a inconsistent 9-year financial track record.

Q.3 Is Dalmia Bharat Ltd undervalued or overvalued?

Dalmia Bharat Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Dalmia Bharat Ltd a good buy now?

Dalmia Bharat Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Dalmia Bharat Ltd?

Dalmia Bharat Ltd revenue growth is -4.8% for FY-2025, which is below its 5-year CAGR of 7.64%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Dalmia Bharat Ltd?

Dalmia Bharat Ltd Return on capital employed is 5.57% for FY-2025, which is below its 5-year historical median of 7.59%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.3 Return on Asset of Dalmia Bharat Ltd?

Dalmia Bharat Ltd Return on Asset is 2.42%, which is below its 5-year historical median of 3.6%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Dalmia Bharat Ltd?

Dalmia Bharat Ltd Return on equity is 4.14% for FY-2025, which is below its 5-year historical median of 5.8%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Dalmia Bharat Ltd?

Dalmia Bharat Ltd Cash conversion cycle is 1 days, below its 5-year historical median of 7 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.6	0.6
ROE	4.14	5.8
ROCE	5.57	7.59
Cash Conversion Cycle	1 days	7 days

Q.6 Gross Profit margin of Dalmia Bharat Ltd?

Dalmia Bharat Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.9% for FY-2025, which is below its 5-year median of 14.9%, indicating decreasing margins.

Q.7 Operating Profit Margin of Dalmia Bharat Ltd?

Dalmia Bharat Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.22% for FY-2025, which is in line with its 5-year median of 17.95% indicating stable margins.

Q.8 Net Profit Margin of Dalmia Bharat Ltd?

Dalmia Bharat Ltd Net Profit Margin is 5% for FY-2025, is below with its 5-year median of 7.42%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	12.9	14.9
Operating Profit Margin	17.22	17.95
Net Profit Margin	5	7.42

Q.9 Debt to Equity ratio of Dalmia Bharat Ltd?

Dalmia Bharat Ltd Debt-to-Equity ratio is 0.30, which is above with the industry average of 0.28, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Dalmia Bharat Ltd?

Dalmia Bharat Ltd Debt to cash flow from operations is 2.48, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Dalmia Bharat Ltd?

Promoters hold 55.84% of the Dalmia Bharat Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Dalmia Bharat Ltd vs industry peers?

Dalmia Bharat Ltd revenue CAGR is 7.64%, compared to the industry median CAGR of 8.67%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-4.8	8.7
Gross Profit Growth	-12	3.7
Operating Profit Growth	-8.7	2.9
Net Profit Growth	-18.2	16.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.6	0.67
ROE	4.14	12.77
ROCE	5.57	15.51
Cash Conversion Cycle (days)	1.39	15

Valuation & price assessment

Q.1 Stock return of Dalmia Bharat Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 5.11% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	5.1%	-0.6%	1.6%

Q.3 Valuation ratios of Dalmia Bharat Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	32.65	35.70	22.85
Price to Book	2.07	2.23	1.92
Price to Sales	2.51	2.68	1.40
EV to EBITDA	13.23	14.46	11.62

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