HEI­DEL­BERG CE­MENT IN­DIA

Flash News Investment - - RECOMMENDATIONS -

We had rec­om­mended Hei­del­berg Ce­ment In­dia in vol­ume no 34, is­sue no 47 (dated Sept 10, 2018) when the scrip was trad­ing at Rs 163. Our rec­om­men­da­tion was backed by fac­tors like ro­bust growth and uptick in de­mand. In Q2FY19, the com­pany’s rev­enue was up by 14.1 per­cent YoY from Rs 426 crore to Rs 486 crore. EBITDA grew by 25.8 per­cent YoY and mar­gin im­proved from 22 per­cent to 24 per­cent. PAT for the quar­ter jumped by 51.5 per­cent YoY to Rs 50 crore from Rs 33 crore. The de­mand in eastern and cen­tral re­gions of In­dia, where the com­pany has a ma­jor pres- ence, is ex­pected to re­main sta­ble. By FY21, the whole ce­ment in­dus­try would ex­pand its ca­pac­ity by 60-65 MT. Con­sid­er­ing these fac­tors, we urge in­vestors to HOLD the scrip.

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