200 per cent jump in net profit in this multibagger cement stock; Company announced capex plan worth Rs 91,00,00,000 to cater future growth!

The stock is up by 55 per cent in just 1 year and gave multibagger returns of over 200 per cent in 3 years.

On Monday, shares of Dalmia Bharat Ltd surged 1.28 per cent to Rs 2,322.25 per share with an intraday high of Rs 2,374.60 and an intraday low of Rs 2,283.35. The shares of the company saw a spurt in volume by more than 2.34 times on BSE.

The company announced its stellar Quarterly Results and half-yearly results which was the main reason for the increase in stock price. Here are the details:

Quarterly Results: The net sales increased by 6 per cent to Rs 3,149 crore, operating profit increased by 62.41 per cent to Rs 674 crore and net profit increased by 200 per cent to Rs 123 crore in Q2FY24 compared to Q2FY23. The FIIs have increased their stake from 12.87 per cent to 13.91 per cent in September 2023.

Half-yearly Results: The net sales increased by 8 per cent to Rs 6,773 crore, operating profit increased by 30.7 per cent to Rs 1,341 crore and net profit increased by 16.59 per cent to Rs 267 crore in H1FY24 compared to H1FY23.

Capex Plan Update - The Board of Directors of Dalmia Cement (Bharat) Limited, a wholly-owned subsidiary of the company at its meeting held on October 14, 2023, has approved the proposal to increase cement grinding capacity by 0.5 MTPA at Rohtas Cement Works, Bihar with Rs 91,00,00,000 investment to cater future growth

According to the annual results, the net sales increased by 20 per cent to Rs 13,540 crore and net profit decreased by 37.5 per cent to Rs 525 crore in FY23 compared to FY22. The company has a market cap of Rs 43,550 crore and has delivered good profit growth of 38.5 per cent CAGR over the last 5 years.

Dalmia Bharat is engaged in the business of manufacturing and selling cement. The company was started in 1939 and is the 4th largest cement manufacturer by installed capacity in India.

The stock is up by 55 per cent in just 1 year and gave multibagger returns of over 200 per cent in 3 years. Investors should keep an eye on this Mid-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.