Dalmia Bharat At Lowest Discount To UltraTech Cement In Five Years

Dalmia Bharat Ltd. is trading at its lowest discount to market leader UltraTech Cement in five years.

The stock declined 15 percent so far this year compared with a 2 percent gain in UltraTech Cement, according to Bloomberg data.

Dalmia Bharat trades at 12.4 times its estimated one-year forward enterprise value-to-Ebitda compared with 18.1 times for UltraTech Cement—a discount of 32 percent, the lowest since 2013.

Dalmia Bharat trades at a 15 percent premium to its Bloomberg consensus target price. Macquarie Research, which has an ‘Outperform’ rating on the stock, said the cementmaker is entering the big league and the discounts to majors should further narrow on account of corporate structuring, strong earnings growth and deleveraging efforts.