Heidelberg Cement India Ltd., incorporated in the year 1958, is a Mid Cap company (having a market cap of Rs 5518.03 Crore) operating in Cement sector.
Heidelberg Cement India Ltd. key Products/Revenue Segments include Cement, Other Operating Revenue, Scrap, Sale of services and Clinker for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Standalone Total Income of Rs 590.33 Crore, up 4.22 % from last quarter Total Income of Rs 566.45 Crore and up 12.68 % from last year same quarter Total Income of Rs 523.88 Crore. Company reported net profit after tax of Rs 59.56 Crore in latest quarter.
Investment Rationale
HeidelbergCement India’s (HEIM) Q2FY22 EBITDA at Rs1.2bn (down 8% YoY) was higher than consensus estimates led by higher volumes, up 11% YoY and 4% QoQ. Realisation remained flat QoQ and YoY while total cost/te rose 6.8% YoY and 4.1% QoQ resulting in EBITDA/te declining 16.8% YoY and 14.6% QoQ to Rs946/te. While investor concerns around sharp cost increases seem valid, industry has demonstrated strong pricing resilience in the past. Factoring in cost inflation, the brokerage reduces FY22E-FY24E EBITDA by 3-7%. It maintains ADD with an unchanged target price of Rs280/sh based on 8x Sep’23E EV/E on quarterly rollover. Key risk: Lower demand / pricing.
Promoter/FII Holdings
Promoters held 69.39 per cent stake in the company as of 30-Sep-2021, while FIIs owned 5.81 per cent, DIIs 10.94 per cent.
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