Dalmia Bharat Limited

“Dalmia Bharat is a sub-scale commodity cement producer destroying capital through aggressive debt-funded expansion into an oversupplied market. ROCE has halved to 6% (well below cost of capital), FCF has been negative for three consecutive years, and debt is rising to fund capacity that earns negative incremental returns. At 28x TTM earnings with no moat, no pricing power, and the worst returns among large-cap cement peers, the stock offers negative expected returns with asymmetric downside risk. Management's empire-building strategy prioritizes tonnage over value creation. There is no margin of safety at current prices.”