Dalmia Bharat’s stock soars

Bloomberg is reporting that Dalmia Bharat has seen a re-rating since the start of this financial year. The cement maker has gained 127% since April, compared to gains of between 13% and 39% for the top four cement companies – Ultratech Cement, Shree Cements, Ambuja Cements and ACC.

Dalmia Bharat’s sharp run-up has been triggered by its financial performance in Q1. The company clocked 22% volume growth and 77% profit growth in April to June quarter. The company’s operating margin expanded 400 basis points, while its earnings before interest, tax, depreciation and amortisation (EBITDA) per t of Rs 1300 was the best in the industry.

Dalmia Bharat is also the most preferred stock in the cement sector. The stock currently trades at a premium to the Bloomberg consensus price target of Rs 1536 per share.

Edited from source by Joseph Green. Source: Bloomberg

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