The shares of Dalmia Bharat Ltd. fell 3.70% in trade as of 10:48 am on Tuesday. The company entered into agreements on Monday to acquire cement and power assets of Jaiprakash Associates Ltd., for an enterprise value of Rs 5,666 crore.
The stock is trading at 6.1 times its 30-day average volume.
Jaiprakash Associates Ltd., will sell its clinker, cement and power plants to the Dalmia Bharat Group, which amount to cement capacity of 9.4 million tonnes, along with a clinker capacity of 6.7 million tonnes and thermal power plants of 280 megawatts. Dalmia Bharat also bought the Jaypee Nigrie Cement Grinding Unit for Rs 250 crore.
Out of the 34 analysts tracking the company, 28 maintain a ‘buy’ rating, four suggest ‘hold’ and two analysts recommend to ‘sell’ the stock.
Here’s what brokerages make of Dalmia Bharat’s acquisitions:
- Morgan Stanley: Maintains ‘overweight’ rating at a target price of Rs 1,900.
- Motilal Oswal: Maintains ‘overweight’ rating at a target price of Rs 1,900, implying a potential upside of 5%.
- Emkay Research: Maintains ‘hold’ rating at a target price of Rs 1,600, implying a potential downside of 16.1%.
