Jefferies has reiterated its ‘Buy’ rating on Dalmia Bharat with a target price of ₹2,070, implying a significant upside of 16.6% from the current market price of ₹1,774.95.
The brokerage highlighted that the cement sector’s result season began on a weaker note, with Dalmia Bharat witnessing weak volume growth and a miss in EBITDA, attributed to higher operating costs. However, realizations improved slightly, registering a 3% sequential growth.
Notably, the company’s net debt surged sharply from ₹6,400 crore to ₹12,400 crore on a quarter-on-quarter basis, raising concerns over leverage despite positive realizations.
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