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Check Before You Invest : Dalmia Bharat Ltd

BSE: 542216 NSE: DALBHARAT ISIN: INE00R701025
  |   Sector:  Construction & Infrastructure   |   Industry:  Cement & Construction Materials

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 10 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 7.6% , indicating slower growth.
Q.2 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.3 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 below its 5 year median of 17.95% indicating decreasing margins.
Q.4 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 Historic Median
Gross Profit Margin 12.9 14.9
Operating Profit Margin 17.22 17.95
Net Profit Margin 5 7.42
Q.5 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.6 Return on Equity (ROE) of Dalmia Bharat Ltd?
Dalmia Bharat Ltd Return on equity is 4.14% for FY-2025 , which is below its historical median of 5.8%, indicating the business is making worse use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 11.25%, indicating value preservation.
Q.8 Cash conversion cycle of Dalmia Bharat Ltd?
Dalmia Bharat Ltd Cash conversion cycle is 1 days, below its historical median of 7 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 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.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, indicating the business is able to service its debt comfortably.

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 Industry Median
Revenue 13,980 13,552
Gross Profit 1,803.4 2,065.3
Operating Profit 2,407 2,407
Net Profit 699 854
Operating Efficiency
Current Level 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 4.72% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 4.7% -0.9% 7.6%
Q.3 Valuation ratios of Dalmia Bharat Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 30.81 12.36 34.86
Price to Book 2.05 1.93 1.92
Price to Sales 2.49 2.48 1.25
EV to EBITDA 13.27 11.74 11.55

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