Dalmia Bharat trades higher despite weak Q2 numbers; brokerages see up to 20% upside move
Dalmia Bharat Share Price: Following the release of Dalmia Bharat's Q2FY23 numbers, brokerages have revised their targets, seeing an upside move of around 20 per cent.
Dalmia Bharat Share Price: Dalmia Bharat traded higher on Thursday, November 3, despite a massive fall in net profit falls in the July-September quarter. The cement maker on Wednesday reported a 76.84 per cent decline in consolidated net profit at Rs 47 crore against Rs 203 crore during the corresponding quarter a year ago.
The stock opened in red tracking the negative sentiment in the domestic markets amid a weak trend in global equity markets post aggressive rake hike by the Federal Reserve. The stock quoted Rs 1585 at 9:15 and later reversed to jump nearly 4 per cent at 3 PM to trade at Rs 1654 on the NSE.
Following the release of Dalmia Bharat's Q2FY23 numbers, brokerages have revised their targets, seeing an upside move of around 20 per cent.
Dalmia Bharat in a regulatory filing informed that its revenue from operations increased 15.11 per cent to Rs 2,971 crore in the quarter. In the year-ago period, the same stood at Rs 2,581 crore.
The company's total expenses rose nearly 29 per cent to Rs 2,980 crore. Sales volume increased 13.72 per cent in the September quarter to 5.8 Million Tonnes (MT) compared to the year-ago period.
"Despite a seasonally weak quarter, we are encouraged with recent momentum in prices and volumes," Dalmia Cement (Bharat) MD and CEO Mahendra Singhi said. "Our past investments in strengthening our operational efficiencies and cost rationalisations have enabled us to maintain our low-cost leadership," he added.
Dalmia Bharat Dividend 2022
Meanwhile, the company has declared an interim dividend of 200 per cent, which is Rs 4 per equity share.
"We expect profitability to significantly improve for the rest of the year as the benefits of correction in fuel prices will start getting reflected in the current quarter. I am cautiously optimistic about the opportunity that lies ahead," Singhi said.
Dalmia Bharat stocks have delivered a positive return of around 15 per cent in the pas 6 months. Year-to-date, the company has yielded a negative return of 12 per cen.
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04:01 PM IST