1. At a Glance
Dalmia Bharat, India’s 4th largest cement player, has a legacy that goes back to pre-Independence, yet it’s still swinging hammers in a modern battlefield of UltraTechs and Ambujas. But with margins under pressure and RoCE playing hide and seek, is this legacy titan still laying strong foundations—or crumbling slowly?
2. Introduction with Hook
Imagine a 1930s heritage builder still trying to win architectural design awards in 2025. That’s Dalmia Bharat.
- India’s 4th largest cement manufacturer by capacity.
- But just 5.6% RoCE, while UltraTech’s cement dreams are already on steroids.
- And don’t get us started on its PE of 58—that’s a premium for a company that last clocked -5% sales TTM growth.
So here’s the real question: Is Dalmia just a big cement bag with a branding sticker… or a misunderstood beast gearing up for a rerating?
3. Business Model (WTF Do They Even Do?)
Dalmia Bharat manufactures and sells cement under brands like Dalmia Cement, Dalmia DSP, and Konark. Operations span the East, North-East, South, and Central India, with ambitious green initiatives and ESG rhetoric cemented into every press release.
Business Segments:
- Grey Cement (core)
- Refractory through subsidiary Dalmia OCL
- Power & Waste Heat Recovery Units as side quests
But let’s be honest, it’s 95% grey dust, 5% “we care about the environment” brochures.
4. Financials Overview
Revenue (FY25): ₹13,980 Cr
PAT (FY25): ₹699 Cr
EBITDA (FY25): ₹2,407 Cr
EPS: ₹36.4
- 3-Year Sales CAGR: 7%
- OPM crashed from 27% (FY21) to 17% (FY25)
- Profit margins are less “ultra” and more “meh”
In the land of cement, Dalmia is producing concrete, but not returns.
5. Valuation
Valuation is like cement—it sets eventually.
With a PE of 58x and flat growth, even the Ambujas are saying “Bro, calm down.”
Fair Value Estimate (Based on DCF, PE Band, and EV/EBITDA):
- Lower Range: ₹1,500 (based on 20x FY26E EPS of ₹75)
- Upper Range: ₹2,100 (assuming margin recovery + cement price cycle upturn)
Current Price (₹2,182) is basically betting on a full-blown revival. Don’t blink.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 results coming July 22. Expect whispers around margin improvement.
- Litigation Update: Madras HC remanded a tax case—no adverse financial hit, but it’s a distraction.
- Green Push: Major investments in solar power, waste heat recovery—this is where they try to win ESG points.
- Reclassification Approved: Two promoters moved to “Public” category—more float incoming?
Drama? Not quite. But there’s slow-burning cement kiln heat.
7. Balance Sheet
| Metric | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 38 |
| Reserves | 17,336 |
| Total Borrowings | 5,702 |
| Fixed Assets + CWIP | 19,922 |
| Investments | 5,119 |
| Other Liabilities | 7,095 |
| Net Worth | ~17,374 |
Key Points:
- Debt rising, but manageable
- Asset-heavy with aggressive CWIP addition
- No major red flags, but not a clean sheet either
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | 2,252 | -2,326 | 168 | 94 |
| FY24 | 2,635 | -2,750 | 222 | 107 |
| FY25 | 2,117 | -2,270 | -39 | -192 |
Takeaway:
CFO is strong, but they’re burning it on capex like it’s Holika Dahan. Free cash flow? Nah, it ran away screaming.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 5.6% |
| ROE | 4.15% |
| Debt/Equity | ~0.33x |
| OPM | 17% |
| Inventory Days | 217 |
| CCC | -1 day |
Summary:
- ROE & ROCE are on diet
- Negative Cash Conversion Cycle is nice but due to payables stretch
- Inventory piling up = weak demand or oversupply?
10. P&L Breakdown – Show Me the Money
| Metric | FY25 |
|---|---|
| Sales | ₹13,980 Cr |
| EBITDA | ₹2,407 Cr |
| EBITDA Margin | 17.2% |
| Net Profit | ₹699 Cr |
| EPS | ₹36.41 |
| Dividend Payout | 25% |
Verdict: You can see the cash, but not feel it. Feels like watching IPL on mute.
11. Peer Comparison
| Company | ROCE | EPS | OPM | P/E | Market Cap |
|---|---|---|---|---|---|
| UltraTech Cem | 10.9% | ₹211 | 16.5% | 60.2 | ₹3.68L Cr |
| Ambuja Cements | 10.5% | ₹22 | 17.0% | 35.2 | ₹1.46L Cr |
| Shree Cement | 6.7% | ₹30 | 20.4% | 100.2 | ₹1.12L Cr |
| JK Cement | 14.0% | ₹118 | 17.1% | 62.8 | ₹49.8K Cr |
| Dalmia Bharat | 5.6% | ₹36 | 17.2% | 58.3 | ₹40.9K Cr |
Dalmia is hanging in there, but it ain’t winning medals. It’s the Rahul Dravid of cement—reliable but not flashy.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 55.84% (stable)
- DII Holding: Jumped from 8.5% to 16.4% in 2 years (Faith or FOMO?)
- FII Holding: Slipping from 14% to 8.3%—maybe they don’t like concrete snacks?
- No. of Shareholders: Exploded from 51K to 86K—retail junta clearly bought the “cement boom” story.
13. EduInvesting Verdict™
Dalmia Bharat is the slightly overweight cousin in the cement family. Strong heritage, decent execution, but nowhere close to being the alpha. If you want consistent margins, killer returns, and sexy ratios—look elsewhere. But if you’re betting on a late bloomer in the cement upcycle, Dalmia might just surprise you with a six on the last ball.
No Buy/Sell calls. Just pouring the facts into the mould.
Metadata
– Written by EduBot | 15 July 2025
– Tags: Cement, Infra, Dalmia Bharat, Midcap, Earnings, Capex, ESG, ROCE
