Mehabe score: 5 G Factor: 4 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 8.
Description
Dalmia Bharat is engaged in the business of Manufacturing and Selling of Cement. The company was started in 1939 and is the 5th largest cement manufacturer by installed capacity in India.##
Main Points
Manufacturing Capabilities
Presently, the company owns 13 manufacturing facilities across India with a total cement manufacturing capacity of 30.75 MnTPA.# It also owns 195 MW of cogen capacity in its manufacturing facilities.# It has 5-6% market share in total cement manufacturing capacity in India.#
5 of the company’s plants are located in eastern region, 4 in southern region and 4 in north-eastern region of India. It is the only cement company with at least one plant in each of the four key eastern states of West Bengal, Bihar, Jharkhand and Odisha.Site:DALBHARATMain Symbol:DALBHARAT
Stock trades at 2250.0, above its 50dma 1943.45. It also trades above its 200dma 1494.03. The stock remains bullish on techicals
The 52 week high is at 2375.00 and the 52week low is at 651.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Stock is trading at 3.33 times its book value
-Tax rate seems low
– has a low return on equity of 4.95% for last 3 years.
Competition
– The industry trades at a mean P/E of 17.4x. Dalmia BharatLtd trades at the industry’s max P/E of 34.24x. DALBHARAT trades at a P/E of 34.2x
– Industry’s mean G-Factor is 5.3 while the mean Piotski score is 9.0. DALBHARAT has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 17.7%. The max 1- month return was given by Anjani Portland: a return of 46.78 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 2589.0 cr compared to Rs 1901.0 cr for period ended Jun 2020, a rise of 36.2%
Operating Profits reported at Rs 665.0 cr for period ended Jun 2021 vis-vis 613.0 for period ended Jun 2020 .
Operating Margins contracted -656.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 12.13 compared to Rs 33.51 for previous quarter ended Mar 2021 and Rs 10.13 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 11002.0 cr for period ended TTM vis-vis sales of Rs 10097.0 cr for the period ended Mar 2021, a growth of 8.2%. The 3 year sales cagr stood at 5.1%.
Operating margins shrank to 26.0% for period ended TTM vis-vis 27.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 1268.0 cr for period ended TTM vis-vis sales of Rs 1231.0 cr for the period ended Mar 2021, rising 2.9%.
Company recorded a healthy Net Profit CAGR of 60.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 3596.0 cr for period ended Mar 2021 vis-vis Rs 2337.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 217% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 9% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 559% vis-vis a compounded profit growth of 62% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 13.14% vis-vis 13.46% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.1% vis-vis 25.53% for Mar 2021
Conclusion
– has reduced debt. – Stock is trading at 3.33 times its book value
-Tax rate seems low
– has a low return on equity of 4.95% for last 3 years.
