ET INTELLIGENCE GROUP: The stock of Tamil Nadu-based cement manufacturer Dalmia Bharat has nearly trebled over the past 12 months to Rs 2,523. This should help Dalmia Bharat to sustain the momentum.By the end of September 2017, the company is expected to complete its corporate restructuring by amalgamating its subsidiary OCL India , which operates in the eastern region. This is expected to make the consolidated operations leaner and save on tax expenses.As demand improves, the company's cashflows from operations are also expected to improve.This can be used in reducing its debt since the company does not have fresh expansion plans.The company's operations are cost efficient. Its operating profit grew by 19.5 per cent to Rs 1,901 crore.Its net debt-equity ratio fell to 0.8 in FY17 from 1.1 in FY16.VALUATIONThe company's enterprise value (EV) is 9.3 times FY19 projected operating profit before depreciation (EBITDA).This is quite attractive given the past three-year average of 14.3. Investors with long term horizon may consider the stock for further analysis.

Source: Economic Times May 15, 2017 04:52 UTC