4th Largest Cement Company of India Starts a 2.4 MTPA Cement Grinding Unit in Assam, Expanding Total Capacity to 49 MTPA
With a PE ratio of 48.4x, the company trades at a discount compared to the industry PE of 57.7x. The company has ROCE of 6.71 per cent and ROE of 4.78 per cent.
Dalmia Bharat Limited has commenced commercial production at its new cement grinding unit in Lanka, Assam, with a capacity of 2.4 million tonnes per annum (MTPA). This development increases the company's total cement manufacturing capacity to 8 million tonnes in the North-East and 49 MTPA across India. The new unit is part of a Rs 3,642 crore investment plan announced in May 2023 to bolster market presence and meet rising regional demand. The integrated clinker unit, with a capacity of 3.6 MTPA, is in the advanced stages of commissioning and is expected to be operational by the second quarter of FY26. Dalmia Bharat has a significant presence in the Northeast, operating four cement plants in the region and contributing to major infrastructure projects. The company emphasizes infrastructure development and aims to support landmark projects in the North-East through this increased capacity.
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Dalmia Bharat Limited, founded in 1939, is one of India's leading cement manufacturers, ranking fourth in the country by installed capacity. With its headquarters in New Delhi, the company operates across 10 states with 15 manufacturing units. As of March 2025, Dalmia Bharat's stock is priced at Rs 1606.05, with a market capitalization of Rs 30,123.90 crores. The stock has seen a 14.57 per cent decline over the past year but has gained 8.94 per cent over three years. The company is recognized for its low carbon footprint and commitment to sustainable practices, being the first cement company to join initiatives like RE100, EP100, and EV100.
In the Quarterly Results of Dec-24, the revenue stood at Rs 3,181.00 crore, reflecting a decline of 11.74 per cent YoY but an increase of 3.05 per cent QoQ. The net profit was Rs 61.00 crore, marking a decrease of 76.81 per cent YoY but a growth of 32.61 per cent QoQ. The net profit margin for the quarter was 1.92 per cent, compared to 1.49 per cent in Sep-24 and 7.30 per cent in Dec-23.
For the full-year results of FY24, the revenue was Rs 14,691.00 crore, growing by 8.40 per cent compared to FY23. The net profit for FY24 was Rs 563.00 crore, reflecting a decline of 1.46 per cent from the previous year. The net profit margin stood at 3.67 per cent in FY24, compared to 4.04 per cent in FY23.
As of December 2024, the shareholding pattern stands as follows: Promoters hold 74.92 per cent, Foreign Institutional Investors (FIIs) hold 0.89 per cent, Domestic Institutional Investors (DIIs) hold 0.05 per cent, the Government holds 0.16 per cent, and the Public holds 23.99 per cent.
With a PE ratio of 48.4x, the company trades at a discount compared to the industry PE of 57.7x. The company has ROCE of 6.71 per cent and ROE of 4.78 per cent.
Investors must keep this Mid-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.