Fact based stock research
Dalmia Bharat (NSEI:DALBHARAT)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Dalmia Bharat stock research in summary

dalmiabharat.com

ANALYSIS: With an Obermatt Combined Rank of 29 (worse than 71% compared with investment alternatives), Dalmia Bharat (Construction Materials, India) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Dalmia Bharat are low in value (priced high) with a consolidated Value Rank of 39 (worse than 61% of alternatives), show below-average growth (Growth Rank of 35), and are riskily financed (Safety Rank of 45), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 29, is a hold recommendation based on Dalmia Bharat's financial characteristics. As the company Dalmia Bharat's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 39), low growth (Obermatt Growth Rank of 35), and risky financing practices (Obermatt Safety Rank of 45), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	39
Growth Rank	35
Safety Rank	45
Combined Rank	29

Country	India
Industry	Construction Materials
Index	Energy Efficient
Size class	Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Dalmia Bharat

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	42	41	41	39
GROWTH
GROWTH	84	83	43	35
SAFETY
SAFETY	81	47	54	45
SENTIMENT
SENTIMENT	n/a	82	44	^new
360° VIEW
360° VIEW	n/a	83	34	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Dalmia Bharat is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	42	41	41	39
GROWTH
GROWTH	84	83	43	35
SAFETY
SAFETY	81	47	54	45
COMBINED
COMBINED	86	73	40	29

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Dalmia Bharat the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 39 (worse than 61% compared with alternatives), Dalmia Bharat shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Dalmia Bharat. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 57, which means that the stock price is lower compared with invested capital than for 57% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 46 which means the stock price compared with what market professionals expect for future profits is higher than 54% of comparable companies, indicating a low value concerning Dalmia Bharat's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 57 and for the dividend yields rank which is lower than for 76% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 39, is a hold recommendation based on Dalmia Bharat's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Dalmia Bharat, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	35	45	42	46
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	49	34	36	30
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	48	57	52	57
DIVIDEND YIELD
DIVIDEND YIELD	30	20	23	24
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	42	41	41	39

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Dalmia Bharat; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 35 (better than 35% compared with alternatives), Dalmia Bharat shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Dalmia Bharat. Sales Growth has a rank of 64, which means that, currently, professionals expect the company to grow more than 64% of its competitors. Profit Growth with a rank of 51 is also above average. But Capital Growth has only a rank of 29, and Stock Returns with 29 are also below-average. Stock returns for Dalmia Bharat have recently been below 71% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 35, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Dalmia Bharat. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	56	76	80	64
PROFIT GROWTH
PROFIT GROWTH	n/a	8	32	51
CAPITAL GROWTH
CAPITAL GROWTH	n/a	78	31	29
STOCK RETURNS
STOCK RETURNS	96	89	59	29
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	84	83	43	35

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Dalmia Bharat.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 45 (better than 45% compared with alternatives), the company Dalmia Bharat has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Dalmia Bharat is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Dalmia Bharat.Leverage is at 54, meaning the company has a below-average debt-to-equity ratio. It has less debt than 54% of its competitors.Refinancing is at a rank of 55, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 55% of its competitors. Liquidity is at 34, meaning that the company generates less profit to service its debt than 66% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 45 (worse than 55% compared with alternatives), Dalmia Bharat has a financing structure that is riskier than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Dalmia Bharat more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	78	56	56	54
REFINANCING
REFINANCING	22	55	47	55
LIQUIDITY
LIQUIDITY	98	26	40	34
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	81	47	54	45

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Dalmia Bharat and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	70	62	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	53	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	73	37	^new
MARKET PULSE
MARKET PULSE	n/a	53	53	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	82	44	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Dalmia Bharat.
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