India's Dalmia Bharat firms on Motilal Oswal's "top pick 2024" call

Jaiprakash Associates

01/01/2024 08:04

** Shares of Dalmia Bharat  DALB.NS  up ~3.5%, while other
cement maker's are flat to up 2%
    ** Motilal Oswal says DALB among its top picks for 2024
    ** Says optimistic on DALB's long-term outlook due to
capacity increase plans; strong balance sheet; and focus on
sustainable growth via higher blended cement, green energy mix
    ** Says DALB's underperformance in past six months vs most
cement stocks mainly due to delay in buying Jaiprakash
Associates'  JAIA.NS  cement assets and demand slowdown in east
    ** Says DALB's expected earnings improvement as well as
scale, capacity growth (without balance sheet leverage) to boost
stock's multiples
    ** Brokerage reiterates "buy" and 2,800 rupees TP, vs
current stock price of 2,357.30 rupees
    ** Avg rating of 27 brokers on DALB is also equivalent of
"buy" but median TP is lower at 2,525 rupees - LSEG data

 (Reporting by Dimpal Gulwani in Bengaluru)
 ((dimpal.gulwani@thomsonreuters.com))