Dalmia Bharat Share Price Target Set at Rs 2,300 By Emkay - Is It Time To Add In Your Portfolio

Emkay Global has initiated coverage on Dalmia Bharat with an ‘Add’ rating and a target price of Rs 2,300, citing strong growth potential backed by capacity expansion and operational efficiency.

“We assume coverage of Dalmia Bharat with ADD and target price of Rs2,300, valuing the stock at Sep-27E EV/EBITDA of 11x,” Emkay stated in its brokerage report.

The brokerage firm notes that the stock has already delivered a ~25% return over the past three months and is currently trading slightly above its long-term average valuation.

“Dalmia has delivered stellar, ~25%, returns in the past three months and is trading at ~12x 1-year forward EV/EBITDA, which is slightly above the long term-mean,” added Emkay in its report.

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However, Emkay believes there’s room for further upside as investors track four key developments: Dalmia’s expansion strategy, its bid for Jaiprakash Associates’ cement assets, ongoing cost-cutting efforts, and regional pricing trends in South and East India.

According to the report by Emkay Global, “We believe the street will now look at 1) Dalmia’s organic capacity expansion plans and subsequent ramp-ups, 2) the outcome of its bid on Jaiprakash Associates’ (JAL) assets, 3) implementation of cost-rationalization steps (Rs150-200/ton by FY27), and 4) pricing robustness in the South and East India which could provide further momentum to the stock, in our opinion.”

Meanwhile, Emkay stated that Dalmia aims to increase its cement capacity from 49.5 million tonnes to 75 mtpa by FY28. Emkay expects a fresh round of capex announcements in FY26 to help meet that target.

Despite the expansion, the company’s balance sheet is expected to remain healthy, with most of the capital expenditure likely funded through internal accruals and partial stake sales in Indian Energy Exchange (IEX), noted Emkay.

The brokerage firm projects steady earnings growth, with EBITDA per tonne rising from Rs 1,050 in FY26 to Rs 1,240 by FY28. While Emkay awaits clarity on the outcome of the JAL bid and its impact on returns, it sees enough near-term momentum to justify the Rs 2,300 target.