Dalmia Bharat Limited

Basic Materials — Building Materials · NSE

₹1,667.00+₹57.00 (+3.54%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Dalmia Bharat Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Dalmia Bharat Limited, together with its subsidiaries, manufactures and sells cement and its related products primarily in India.

IndustryBuilding Materials

SectorBasic Materials

Employees5,841

Annual revenue₹14,467 Cr

How does it make money?

Turns over ₹14,467 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 5,841 employees supports ₹2.48 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.48 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE7.4%

What is the outlook?

29 analysts covering the stock expect revenue to grow about 12.1% and earnings to grow about 22.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.1%

Est. earnings growth+22.1%

Analysts29

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +9% while net margin moved +1% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+9%

Margin effect+1%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.0% — barely ahead of inflation
✗ Profit CAGR of only 3.2%
✗ Profit fell 52.1% in the latest year

Quality vs. Valuation

Company Quality

51/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

60/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

33.4x

3Y Median

42.4x

40 monthly readings · mean 43.4x · range 27.4x–65.9x

Sector Median

36.2x

median of 4 sector peers

🟢Current valuation is approximately 21% below its 3y median of 42.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 36.2x.

vs. its own history

Cheap

42.4x median over 40 months · -21%

vs. sector peers

Fair

36.2x median of 4 peers · -8%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.1x

PEG

10.30

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 92% over 3 years, from ₹3,855 Cr to ₹7,406 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 21% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹222 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 3.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 20%✓ 22.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Revenue growth stays above 4% a year✗ 3.0% CAGR
Latest reported year was 7.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹222 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 7.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹31,294 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

33.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹49.88

Profitable

Profitable on a per-share basis

ROE

6.3%

Weak

Weak capital efficiency

ROCE

7.0%

Weak

Low return on total capital employed

Debt/Equity

0.41x

Low

Conservative leverage

Revenue Growth (YoY)

7.0%

Modest

Modest growth

Profit Growth (YoY)

-52.1%

Falling

Profits are shrinking

Dividend Yield

0.60%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹222 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

23.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

11.4%

Average

Average margins

Net Margin

6.2%

Average

Average bottom-line conversion

Current Ratio

1.55

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1673.6 / 1752.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13,237 Cr	₹14,334 Cr	₹13,568 Cr	₹14,467 Cr	+3.0%
EBITDA	₹2,979 Cr	₹2,865 Cr	₹2,561 Cr	₹3,194 Cr	+2.4%
EBITDA Margin	22.5%	20.0%	18.9%	22.1%	—
PAT (Net Profit)	₹1,035 Cr	₹826 Cr	₹683 Cr	₹1,139 Cr	+3.2%
EPS	₹55.19	₹44.03	₹36.42	₹60.73	+3.2%
ROE	6.6%	5.0%	3.9%	6.3%	—
ROCE	7.4%	6.3%	4.9%	7.0%	—
Total Debt	₹3,855 Cr	₹4,805 Cr	₹5,702 Cr	₹7,406 Cr	+24.3%
Free Cash Flow	-₹457 Cr	-₹192 Cr	-₹547 Cr	₹222 Cr	—

🟢 Revenue has grown at 3.0% a year over 3 years.

🟢 EBITDA has grown at 2.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 22.1% over 3 years.

🟢 PAT (Net Profit) has grown at 3.2% a year over 3 years.

🟢 EPS has grown at 3.2% a year over 3 years.

🟡 ROE has held roughly flat at 6.3% over 3 years.

🟡 ROCE has held roughly flat at 7.0% over 3 years.

🔴 Total Debt has grown at 24.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹457 Cr to ₹222 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹33,312 Cr

Total Liabilities

₹15,189 Cr

Cash & Equivalents

₹212 Cr

Operating Cash Flow

₹2,278 Cr

Capex

-₹2,056 Cr

Shareholding (proxy)

Institutional Holding

29.5%

Insider Holding

60.5%

Corporate Actions

Next Earnings

23 Oct 2026

Dividend Rate

₹10

Ex-Dividend Date

23 Jun 2026

Analyst Consensus

Recommendations

26 Buy · 6 Hold · 2 Sell

Target Price (Mean)

₹2,127.47

+27.6% vs CMP

Target Range

₹1,800 – ₹2,500

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

2 mixed1 negative3 general

Dalmia Bharat (NSEI:DALBHARAT) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

DALBHARAT Outlook for the Week

Equitypandit, 09 Oct

Dalmia Bharat Share Price: fresh 52-week low and valuation

Univest, 12 Oct

DALBHARAT Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Dalmia Bharat Q1 Profit Falls 51.4% to Rs 192 Cr, Revenue Grows 7%

HDFC Sky, 24 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Cement shares in focus: Ramco, Dalmia Bharat, Shree, JK, ACC gain up to 5%

Business Standard, 26 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Risk

MiddlingBusiness Quality · Valuation

WeakGrowth · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Revenue growth stays above 4% a year; ROCE stays above 8% · see Key things to watch ↑