Dalmia BharatLtd (DALBHARAT)

FairStock Score: 65/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Graham’s skeptical glasses and Buffett’s business lens. Dalmia Bharat is a cement business, which usually means cyclical demand, heavy capital and limited pricing power. At ₹1,842, market cap ₹34,580 Cr, it trades at 36.9x earnings and 1.92x book (book value ₹958.54). That is not a Graham bargain: his number is ₹1,148.23, so I see a negative margin of safety of -73.57%. The past year’s sales growth of 18.45% is encouraging, but profit growth of -30.30% shows the sales did not convert into earnings. Latest quarter sales were ₹3,506 Cr and net profit only ₹128 Cr. FCF is -₹153 Cr, and ROE/ROCE are just 6.83%/5.58%, below what I want from a quality compounder. The balance sheet is not stretched, with debt/equity 0.41 and promoter holding 55.84%, and Piotroski F-score 8/9 suggests some accounting and operating improvement. Altman Z-score 2.12 is around the grey zone, while EV/EBITDA 138.53 looks extremely expensive. PEG 0.18 is superficially attractive, but with negative profit growth it does not comfort me. Dividend yield 0.55% is negligible. Five-year revenue CAGR of 7.64% points to modest long-term growth. FairStock score 65/100 STEADY captures the mood: not a disaster, not a bargain. In cement, I want to buy when cycle pessimism depresses price, not when earnings are falling and price still sits far above Graham value. I would monitor profit recovery, FCF turning positive, ROCE improving above cost of capital, and valuation coming closer to the Graham Number. Until then, this is a cyclical to watch, not a margin-of-safety buy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer