Dalmia Bharat Ltd, a leading cement manufacturer in India, has successfully commenced commercial production at its newly expanded 2.4 million tonnes per annum (MTPA) cement grinding unit in Lanka, Hojai district, Assam. The expansion, carried out by its material subsidiary, Dalmia Cement (North East) Ltd, marks a strategic step to strengthen the company’s footprint in the northeastern region.
In a regulatory filing on March 15, 2025, the company announced the official start of production at the Assam plant, which has now increased Dalmia Bharat Group’s total cement manufacturing capacity to 49 MTPA, up from 46.6 MTPA. The project involved an investment of INR 696 crore, funded through a mix of equity, debt, and internal accruals. With cement demand rising in the northeast, this expansion is expected to enhance supply chains and improve market penetration.
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Despite this strategic growth initiative, investors must assess the stock’s valuation before making investment decisions. According to InvestingPro’s Fair Value feature, Dalmia Bharat’s fair value is estimated at INR 1,442.1 per share, indicating a 10.3% downside from the current market price (CMP) of INR 1,607.1. This suggests that while the company is making aggressive expansion moves, the stock may be trading above its intrinsic value, warranting a cautious approach for new investors.
InvestingPro’s Fair Value feature provides a comprehensive valuation assessment by leveraging multiple financial models, ensuring investors get a realistic perspective on stock pricing. With access to InvestingPro, investors can analyze not just Dalmia Bharat, but also hundreds of listed companies to identify whether a stock is overvalued or undervalued before making a move.
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