In today’s briefing:
- Result Update:Dalmia Bharat
Result Update:Dalmia Bharat
- We roll over our estimate to FY24E and value the company at 11x FY24E EV/EBITDA, to arrive at a target price of Rs1945/share. This implies an upside of 9% from the CMP and hence we change our rating from BUY to HOLD.
- Dalmia Bharat Limited (DBL) reported flat revenue for Q3fY22 (based on restated financials) YoY. The company registered a volume of 5.7 million tonnes per annum (mntpa) against 5.8 mntpa YoY, implying a volume de-growth of 2%, primarily owing to subdued demand.
- Its EBITDA degrew by 40% on account of higher power/fuel cost and lower realization. Power/fuel cost on a per tonne basis was up 36% while realization contracted by 3%YoY. APAT declined by 48% owing to lower realization and higher costs.
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