Dalmia Bharat Cement Hikes Prices in Eastern Region

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Dalmia Bharat Cement (DBCL) has raised prices in the Eastern region by Rs. 70 per bag in two tranches in most states during September till date. This has led to multi-year high prices for the region. The company is also planning to hike prices by Rs. 20 per bag in a few states in the East on September 17th and by month end.

The overall demand environment in the Eastern region has improved in August and is expected to sustain in September. This is supported by the government’s infrastructure push in the region. DBCL is targeting 15-17% year-on-year volume growth for FY2024. The company will add a 4.9 MTPA capacity in South India to reach 46.6 MTPA by FY2024 end. The acquisition of JP Assets has been delayed to FY2024-end.

We have upgraded our rating on DBCL to Buy with a revised target price of Rs. 2,830. This is based on our upwardly revised estimates and rolling forward our valuation to September 2025E earnings.

The key reasons for our upgrade are:

  • Strong demand recovery in the Eastern region, supported by the government’s infrastructure push.
  • Incremental price hikes in the coming months, which will boost margins.
  • Capacity expansion plans in South India, which will help to boost volumes.
  • Delay in the acquisition of JP Assets, which will reduce debt and improve financial flexibility.

Overall, we believe that DBCL is well-positioned to benefit from the strong demand recovery in the cement sector. We expect the company to deliver strong earnings growth in the coming quarters.


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