Buy Mid Cap Multibagger Dividend Stock For Target Price Of Rs 2000, Double Digit Return: Motilal Oswal

Leading brokerage firm Motilal Oswal, it its latest report, has assigned buy call to the mid-cap stock Dalmia Bharat Ltd with a target price of Rs 2000. If you buy the stock at its current market price of Rs 1741 apiece, it can potentially offer you a return of 15%. If you buy the stock now, you will also be eligible to receive an interim dividend of Rs 4 per share as the company has declared interim dividend on November 3, 2022.

The record date for interim dividend is November 11, 2022. Check key takeaways below:

1. Dalmia Bharat Ltd Stock Outlook

The last trading price of Dalmia Bharat is Rs 1741 with an intraday gain of more than 5%. The 52-week high of the stock is Rs 2195 apiece and 52-week low is Rs 1212 apiece, respectively. The company has a market capitalisation of Rs 32,655.17 crore.

2. Dalmia Bharat Ltd Declares Rs 4 Per Share Dividend

The board of directors of Dalmia Bharat stated in the BSE filing, "Declared interim dividend at the rate of Rs. 4/- (200%) per equity share on 18,74,68,673 equity share of Rs. 2/- each for the financial year 2022-23." The company confirmed/ratified the Record Date (Friday, November 11, 2022) for determining entitlement of shareholders for payment of interim dividend for Financial Year 2022-23 pursuant to Regulation 42 of the Listing Regulations.

3. Dalmia Bharat Ltd Return

The stock has given a return of 114% in last 3-years, declined 14% in last 1-year, and surged 12% in last 3-months.

4. Valuation

According to Motilal Oswal, "We value DALBHARA at 12.5x Sep'24 (Mar'24 earlier) EV/EBITDA to arrive at our TP of INR2,000 (from INR1,815 earlier), implying a potential upside of 21% from the current levels. We reiterate our Buy rating on the stock."

Cement demand is expected to be strong, driven by revival in housing and the government's thrust on infrastructure. It aims to grow at 1.5x of the industry volume growth, added Oswal.

5. About Dalmia Bharat

The company offers a range of cement variants through its brand portfolio of three marquee brands: Dalmia Cement, Dalmia DSP and Konark Cement. Founded by Mr Jaidayal Dalmia in 1939, Dalmia Cement is one of India's pioneering homegrown cement companies.

Headquartered in New Delhi, the company operates as Dalmia Cement (Bharat) Ltd, which is a 100% subsidiary of Dalmia Bharat Ltd, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.