dynamic levels heidelberg cement ltd · 2018. 1. 16. · build on the three pillars of ecology,...

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Report By: Vikash Kandoi – [email protected]

mailto:[email protected]

Source: Company, www.dynamiclevels.com

Heidelberg Cement - Cement for better building

Company Overview and Stock price ……………………………………….……3

Product Overview……………………………………………………………….….…..4

Industry Outlook………………………………………………………………………..6

Company Financial….……..……….…………….……………………….….………8

Balance Sheet…………………………………………..………….………….….……..9

Cash Flow……………..………………………………..…………….………….……..10

Key Financial Ratios………………………………………………………………….10

Peer Comparison…………….…………………………………………….……..…..11

Shareholding Pattern…………………………………………..……………....……13

Investment Rationale………………………………………...………….......…....14

Disclaimer……………………………………………………………………………..…15


Company’s Overview and Stock Price Heidelberg Cement offers a wide range of high quality products.

Alongside classical building materials, they produce special building

products for diverse applications. Their core activities include the

production and distribution of cement and aggregates, the two essential

raw materials for the manufacture of concrete. Their product range is

substantially complemented by downstream ready-mixed concrete and

asphalt activities. Furthermore, Heidelberg Cement offers services such

as worldwide trading in cement and coal by sea. Heidelberg Cement

deliberately focuses on vertical.

Due to the heavy weight of cement and aggregates compared with their

price, production is usually located in close proximity to the sales

markets. The cement transportation radius by road normally does not

exceed 200 km. The delivery radius for aggregates and ready-mixed

concrete by road is less than 100 km. Consequently, they have local

production sites in the around 60 countries in which they offer building

materials. The company currently operates more than 3,000 production

sites worldwide.

EXCHANGE SYMBOL HEIDELBERG

Current Price * (Rs.) 134.45

Face Value (Rs.) 10

52 Week High (Rs.) 144.90 (23-Aug-16)

52 Week Low (Rs.) 59.65 (17-Feb-16)

Life Time high (Rs.) 144.90 (23-Aug-16)

Life Time low (Rs.) 4.35 (12-Mar-03)

Average Daily Movement 5.32

Average Volume 278396

1 Month Return (%) 8.95

P/E Ratio (x) 50.64

Book Value 39.62

Market Cap 3117.06 (Cr)

% of Promoter’s pledged 0

This is a 1 year weekly chart of Heidelberg Cement showing

momentum above 120 levels.

COMPANY PROFILE OF HEIDELBERG, NSE, INDIA

Date of Incorporation 13-May-1958

Date of Listing 22-Dec-1994

Management

Name Designation

Pradeep V Bhide Independent Director

S Krishna Kumar Independent Director

Jamshed Naval Cooper Managing Director

P G Mankad Non Executive Chairman

Albert Scheuer Non Executive Director

Juan-Francisco Defalque Non Executive Director

Kevin Gerard Gluskie Non Executive Director

Soek Peng Sim Non Executive Director

Sushil Kumar Tiwari Whole Time Director

Registered Office Address

9th Floor, Infinity Tower C,DLF Cyber City, Phase-II,122002,Gurgaon,Haryana,India

Website

http://www.mycemco.com


Product overview

Heidelberg Cement Group:

The Heidelberg Cement Group is a global market leader in aggregates

and a prominent player in the fields of cement, concrete and other

downstream activities, ranking as one of the world’s largest

manufacturers of building materials. The Group employs 52,600

manpower at 2,500 locations in more than 40 countries.

Although such products usually go un-noticed many a time, these are an

integral part of day to day lives be it homes, offices, factories, schools,

streets, motorways, bridges, tunnels, water supply and sewage systems.

Making the company proud and it also creates more responsible to

continuously deliver products of highest standard that would over the

coming years perform exceptionally under all weather conditions.

The company’s customers, employees, shareholders as well as local

partners across the globe form the core of their corporate governance.

Their concern for the environment with the emphasis on sustainability

continues to be their driving objective. They have obligated them to

build on the three pillars of ecology, economy and social responsibility.

Heidelberg Cement India:

Heidelberg Cement India Limited (HCIL / Company) is a subsidiary of

Heidelberg Cement Group, Germany. The Company has its operations

in Central India at Damoh (Madhya Pradesh), Jhansi (Uttar Pradesh)

and in Southern India at Ammasandra (Karnataka). The Company

increased its capacity to 5.4 million tones p.a. through brown field

expansion of its facilities in Central India in 2013.

The new manufacturing capacity has enabled the Company to increase

its market share in Central India i.e. Madhya Pradesh and Uttar Pradesh

and in markets of Bihar, Haryana and Uttarakhand. With the help of

committed sales efforts supported by quality products, the Company has

carved a niche for its brand "mycem" in new markets and has further

improved its brand positioning in the existing ones.

Focus on quality and customer satisfaction

Being part of a global giant in the field of cement industry it is our

continuous endeavor to perform on strict standards. It is the excellent

quality of our products and the continuous delivery of customer

satisfaction, HCIL would not have achieved the leading position in the

country. Within the company, every employee

is aware that quality of its products and services

hold the key to our customers' heart. Delivering

customer satisfaction has become a way of life for

them in HCIL.

Brand

mycem

mycempower

mycem ConcreteMAX


PPC

PPC or Portland Pozzolana Cement is a kind of Blended Cement which

is produced by grinding the Portland clinker with gypsum and

pozzolanic materials in measured proportions or by blending Ordinary

Portland Cement (OPC), with Pozzolanic materials in certain

proportions.

Pozzolana is any natural or artificial material containing silica in a

reactive form. The pozzolana is in a finely divided state to allowsilica to

combine with calcium hydroxide (liberated by the hydrating Portland

cement) in the presence of water forming stable Calcium Silicates

Hydrate that have the cementitious properties. The pozzolanic materials

commonly used are

Calcined clay

Fly ash

Silica fumes

The Indian standards for Portland Pozzolana Cement have been issued

in two parts based on the type of pozzolanic materials to be used in

manufacturing of Portland Pozzolana Cement as given below:

IS 1489 (Part 1) 1991, Portland Pozzolana Cement –

specification (fly ash based)

IS 1489 (Part 2) 1991, Portland Pozzolana Cement –

specification (Calcined clay based) the quality of flyash or

calcined clay to be used in manufacturing of PPC is also

specified by BIS in the following standards:

IS 3812 1981 – specification for flyash as pozzolana and

admixture IS 1344 1981 – specification for calcined clay

pozzolana.

In view of the availability of good quality fly ash in

abundant quantity, the use of calcined clay based pozzolana

cement is progressively decreasing.

PSC

PSC or Portland Slag cement is manufactured by either grinding the

Portland clinker with gypsum and granulated slag or blending the

ground granulated blast furnace slag (GGBS) with Ordinary Portland

cement by means of mechanical blenders. Normal composition of

portland cement is 30 % clinker, 5 % gypsum and 70 % blast furnace

granulated slag. The quality of slag used in cement manufacturing is

governed by IS 12089:1987.

PSC has been voted as the most suitable

cement for mass construction because of its

low heat of hydration. Slow hydration of PSC

liberates the C-S-H gel over a longer time

period thus reducing the pores / porosity of

concrete. The dense concrete is more suitable

for structures in the coastal regions as the

flow of water inside the concrete is restricted

resulting in the increase durability of the

structure. PSC (in required proportion) offers

an improved resistance to sulphate attack

from the sea water because of low water

permeability, depleted quantum of

Ca(OH)2 and C3A content.


Industry Outlook

India is the second largest producer of cement in the world. No wonder,

India's cement industry is a vital part of its economy, providing

employment to more than a million people, directly or indirectly. Ever

since it was deregulated in 1982, the Indian cement industry has

attracted huge investments, both from Indian as well as foreign

investors.

India has a lot of potential for development in the infrastructure and

construction sector and the cement sector is expected to largely benefit

from it. Some of the recent major government initiatives such as

development of 98 smart cities are expected to provide a major boost to

the sector.

Expecting such developments in the country and aided by suitable

government foreign policies, several foreign players such as Lafarge-

Holcim, Heidelberg Cement, and Vicat have invested in the country in

the recent past. A significant factor which aids the growth of this sector

is the ready availability of the raw materials for making cement, such as

limestone and coal.

Market Size

Cement demand in India is expected to increase due to government’s

push for large infrastructure projects, leading to 45 million tonnes of

cement needed in the next three to four years.

India's cement demand is expected to reach

550-600 Million Tonnes Per Annum (MTPA)

by 2025. The housing sector is the biggest

demand driver of cement, accounting for

about 67 per cent of the total consumption in

India. The other major consumers of cement

include infrastructure at 13 per cent,

commercial construction at 11 per cent and

industrial construction at nine per cent.

To meet the rise in demand, cement

companies are expected to add 56 million

tonnes (MT) capacity over the next three

years. The cement capacity in India may

register a growth of eight per cent by next

year end to 395 MT from the current level of

366 MT. It may increase further to 421 MT

by the end of 2017. The country's per capita

consumption stands at around 190 kg.


Cement production in India growing at a fast pace

Cement production increased at a CAGR of 6.7 per cent to 270.32

million tonnes over FY07–15.

As per the 12th Five Year Plan, production is expected to reach 407

million tonnes by FY17.

Availability of fly-ash (from thermal power plants) and use of

advance technology has increased production of blended cement.

Availability of fly-ash (from thermal power plants) and use of

advance technology has increased production of blended cement.

The environment-friendly blended cement is more cost-efficient to

produce, as it requires lesser input of clinker and energy.

Road Ahead

The eastern states of India are likely to be the newer and virgin markets

for cement companies and could contribute to their bottom line in

future. In the next 10 years, India could become the main exporter of

clinker and gray cement to the Middle East, Africa, and other

developing nations of the world. Cement plants near the ports, for

instance the plants in Gujarat and Visakhapatnam, will have an added

advantage for exports and will logistically be well armed to face stiff

competition from cement plants in the interior of the country.

A large number of foreign players are also expected to enter the cement

sector, owing to the profit margins and steady demand. In future,

domestic cement companies could go for global listings either through

the FCCB route or the GDR route.

With help from the government in terms of friendlier laws, lower

taxation, and increased infrastructure spending, the sector will grow and

take India’s economy forward along with it.


Company Financials

10

In Cr. Jun-16

Quarterly Mar-16

Quarterly Dec-15

Quarterly Sep-15

Quarterly Jun-15

Quarterly Mar-16 Annual

Net Sales/Income from operations 461.81 397.14 402.72 396.44 431.83 1,628.13

Other Operating Income 8.68 8.55 5.29 6.25 7.09 27.18

Total Income From Operations 470.49 405.69 408.01 402.69 438.92 1,655.31

Increase/Decrease in Stocks 32.11 -23.49 7.83 -4.82 11.14 -9.34

Consumption of Raw Materials 85.13 86.92 82.80 80.33 92.73 342.78

Power And Fuel 102.71 111.23 107.12 117.76 115.93 452.04

Employees Cost 26.57 30.70 24.60 24.68 25.65 105.63

Depreciation 24.66 24.47 23.22 22.92 23.39 94.00

Other Expenses 135.37 127.50 122.78 134.50 141.74 526.52

Total Expenditure 406.55 357.33 368.35 375.37 410.58 1,511.63

Operating Profit 63.94 48.36 39.66 27.32 28.34 143.68

Other Income 1.02 4.46 3.57 3.52 3.93 15.48

P/L Before Int., Excpt. Items & Tax 64.96 52.82 43.23 30.84 32.27 159.16

Interest 24.64 26.83 27.49 27.46 27.01 108.79

P/L Before Exceptional Items & Tax 40.32 25.99 15.74 3.38 5.26 50.37

Exceptional Item -- -- -- -- -- --

P/L Before Tax 40.32 25.99 15.74 3.38 5.26 50.37

Tax 14.06 1.69 6.84 1.28 1.91 11.72

P/L After Tax from Ordinary Activities 26.26 24.30 8.90 2.10 3.35 38.65

PAT 26.26 24.30 8.90 2.10 3.35 38.65

Equity Share Capital 226.62 226.62 226.62 226.62 226.62 226.62

Reserves -- -- -- -- -- 656.69

EPS (Rs.) [After Extraordinary items] 1.16 1.07 0.39 0.09 0.15 1.71

Company’s revenue has jumped by 16.28% OoQ, however YoY revenue rose 6.94%.

Company’s operating profit jumped by 32.21% QoQ and 125.61% YoY.

Net profit has jumped by 8.06% QoQ and huge jump of 683.88% in YoY.

Operating profit margin during last quarter was 13.59%.

Net profit margin during last quarter was 5.58%.


Balance sheet

In Cr. Mar-16

Annual Mar-15 Annual

Dec-13 Annual

Dec-12 Annual

Dec-11 Annual

EQUITIES AND LIABILITIES

SHAREHOLDERS FUNDS

Equity Share Capital 226.62 226.62 226.62 226.62 226.62

Total Share Capital 226.62 226.62 226.62 226.62 226.62

Revaluation Reserves 12.31 12.31 13.34 14.32 15.66

Reserves and Surplus 656.69 632.63 593.40 605.70 573.30

Total Reserves and Surplus 669.00 644.94 606.74 620.02 588.96

Total Share holder’s Funds 895.62 871.56 833.36 846.64 815.58

NON-CURRENT LIABILITIES

Long Term Borrowings 686.09 924.89 1,292.62 985.82 776.91

Deferred Tax Liabilities [Net] 74.89 65.22 4.96 37.77 33.09

Other Long Term Liabilities 3.02 2.93 4.68 5.01 3.72

Long Term Provisions 19.16 20.76 15.09 13.80 10.89

Total Non-Current Liabilities 783.16 1,013.80 1,317.35 1,042.40 824.61

CURRENT LIABILITIES

Short Term Borrowings 70.00 0.00 64.20 45.00 0.00

Trade Payables 185.96 190.99 190.11 148.62 140.74

Other Current Liabilities 506.94 552.52 202.25 245.56 273.40

Short Term Provisions 207.48 190.84 151.34 126.91 101.28

Total Current Liabilities 970.38 934.35 607.90 566.09 515.42

Total Capital And Liabilities 2,649.16 2,819.71 2,758.61 2,455.13 2,155.61

ASSETS

NON-CURRENT ASSETS

Tangible Assets 1,899.81 1,788.81 1,786.16 372.17 345.03

Intangible Assets 3.69 4.96 1.16 1.86 2.59

Capital Work-In-Progress 56.05 127.42 166.98 1,517.07 1,054.41

Fixed Assets 1,959.55 1,921.19 1,954.30 1,891.10 1,402.03

Long Term Loans And Advances 64.93 54.67 30.15 10.01 58.03

Other Non-Current Assets 27.46 103.37 199.43 83.85 59.54

Total Non-Current Assets 2,051.94 2,079.23 2,183.88 1,984.96 1,519.60

CURRENT ASSETS

Inventories 178.21 191.00 198.92 165.04 110.68

Trade Receivables 25.76 19.14 30.60 21.61 24.26

Cash And Cash Equivalents 7.77 146.26 114.14 73.18 310.71

Short Term Loans And Advances 302.73 296.69 230.62 210.07 189.71

Other Current Assets 82.75 87.39 0.45 0.27 0.65

Total Current Assets 597.22 740.48 574.73 470.17 636.01

Total Assets 2,649.16 2,819.71 2,758.61 2,455.13 2,155.61


Cash Flow

In Cr. Mar-16 Annual

Mar-15 Annual

Dec-13 Annual

Dec-12 Annual

Dec-11 Annual

Net Profit/Loss Before Extraordinary Items And Tax 50.37 119.83 -85.38 45.66 42.36

Net Cash Flow From Operating Activities 256.37 237.55 119.39 50.09 52.07

Net Cash Used In Investing Activities -108.07 6.19 -219.70 -431.46 -629.72

Net Cash Used From Financing Activities -286.79 -211.62 141.27 143.84 689.89

Foreign Exchange Gains / Losses 0.00 0.00 0.00 0.00 0.00

Adjustments on Amalgamation / Merger / Demerger / Others 0.00 0.00 0.00 0.00 0.00

Net Inc/Dec In Cash And Cash Equivalents -138.49 32.12 40.96 -237.53 112.24

Cash And Cash Equivalents Begin of Year 146.26 114.14 73.18 310.71 198.47

Cash And Cash Equivalents End Of Year 7.77 146.26 114.14 73.18 310.71

Ratio Analysis 16-Mar 15-Mar 13-Dec 12-Dec

Per Share Ratios

Basic EPS (Rs.) 1.71 2.63 -1.80 1.36

Diluted EPS (Rs.) 1.71 2.63 -1.80 1.36

Cash EPS (Rs.) 5.85 8.7 2.13 2.75

Book Value 38.98 37.92 36.18 36.73

Profitability Ratios

PBDIT Margin (%) 15.29 16.43 9.04 7.94

PBIT Margin (%) 9.61 9.7 1.67 5.08

PBT Margin (%) 3.04 5.86 -7.06 4.13

Net Profit Margin (%) 2.33 2.91 -3.36 2.79

Return on Networth / Equity (%) 4.37 6.92 0.00 3.70

Return on Capital Employed (%) 2.3 3.15 -1.89 1.63

Return on Assets (%) 1.45 2.11 -1.47 1.25

Asset Turnover Ratio (%) 62.48 72.49 43.82 44.96

Liquidity Ratios

Current Ratio (X) 0.62 0.79 0.95 0.83

Quick Ratio (X) 0.43 0.59 0.62 0.54

Inventory Turnover Ratio (X) 9.29 10.7 6.08 6.69

Valuation Ratios

Enterprise Value (Cr.) 2,586.21 2,470.35 2,090.24 2,233.51

Market Cap/Net Operating Revenue (X) 1.11 0.83 0.7 1.16

Price/BV (X) 2.08 1.97 1.03 1.53

Price/Net Operating Revenue 1.11 0.83 0.7 1.16

Earnings Yield 0.02 0.04 -0.05 0.02


Peer Comparison

Peer Comparison on Market Liquidity and Volume

SL INSTRUMENT Price Avg. Volume Market Cap (Rs. in Cr)

1 ACC 1653 276826 30540

2 AMBUJA CEMENTS 267 2417560 52103

3 BINANI INDUSTRIES 113 384063 375

4 BIRLA CORP 655 84047 4924

5 DALMIA BHARAT 1705 85757 15547

6 HEIDELBERG* 130 291262 3016

7 INDIA CEMENTS 152 8422181 4594

8 JK CEMENT 794 24152 5525

9 JK LAKSHMI CEMENT 468 106163 5529

10 KAKATIYA CEMENT 396 108327 300

11 KCP 95 199129 1213

12 MANGALAM CEMENT 334 57123 891

13 NCL INDUSTRIES 121 171201 441

14 OCL 879 20612 5009

17 VISAKA INDUSTRIES 194 179972 310

Company has good average volume and market capitalization this give liquidity to the share price of stock.

Peer Comparison on Leverage Position

SL INSTRUMENT Price % Pledged Debt Equity Ratio (X) Int. Coverage Ratio (X)

1 ACC 1653 0.00 0.00 25.64

2 AMBUJA CEMENTS 267 0.00 0.00 20.5

3 BINANI INDUSTRIES 113 0.00 -4.04 0.55

4 BIRLA CORP 655 0.00 0.35 5.51

5 DALMIA BHARAT 1705 0.00 2.23 2.4

6 HEIDELBERG* 130 0.00 0.86 2.33

7 INDIA CEMENTS 152 76.04 0.83 2.12

8 JK CEMENT 794 0.00 1.92 1.96

9 JK LAKSHMI CEMENT 468 0.00 1.52 1.70

10 KAKATIYA CEMENT 396 4.43 0.19 21.12

11 KCP 95 7.21 0.63 4.63

12 MANGALAM CEMENT 334 0.00 0.7 1.17

13 NCL INDUSTRIES 121 83.05 0.52 4.06

14 OCL 879 68.1 0.78 4.43

15 VISAKA INDUSTRIES 194 0.00 0.86 4.60

Heidelberg has average debt to equity ratio of 0.86 and interest coverage ratio of 2.33 shows that company

can manage its debt better.


Peer Comparison on Profitability and FII Holding.

SL INSTRUMENT Price % FII

Holding P/E Ratio

(X) PAT JUN' 16 PAT MAR' 16 PAT DEC' 15 PAT JUN' 15

1 ACC 1653 15.71 45 237.23 223.47 99.62 128.89

2 AMBUJA CEMENTS 267 20.26 54 399.51 303.76 109.96 226.35

3 BINANI INDUSTRIES 113 0 18 0.83 19.43 1.15 -3.99

4 BIRLA CORP 655 1.23 21 94.33 115.66 6.57 16.64

5 DALMIA BHARAT 1705 7.88 64 118.91 160.44 27.33 56.77

6 HEIDELBERG* 130 8.09 49 26.26 24.3 8.9 3.35

7 INDIA CEMENTS 152 24.22 32 43.98 51.21 5.46 37.8

8 JK CEMENT 794 1.55 34 60.85 70.56 17.09 0.16

9 JK LAKSHMI CEMENT 468 12.57 94 28.72 48.38 -3.67 -23.48

10 KAKATIYA CEMENT 396 0.36 9 6.97 9.1 11.75 -3.37

11 KCP 95 0.15 101 3.24 -1.75 5.26 34.18

12 MANGALAM CEMENT 334 1.88 42 22.59 14.1 -0.21 -18.84

13 NCL INDUSTRIES 121 0 10 9.14 11.6 6.17 20.34

14 OCL 879 2.17 17 105.84 133.53 37.07 48.82

15 VISAKA INDUSTRIES 194 2.89 11 16.62 8.93 1.11 13.62

Cement sector PE multiple is 40 and Heidelberg is trading at 49 which is quite expensive but with its varied product it can

attract further investment similar to big companies like Dalmia Bharat and JK lakshmi Cement.

Peer Comparison on Performance

SL INSTRUMENT 1Month % 3Month % 6Month % 1Year % % Movt Post

Budget

1 HEIDELBERG* 0 28 70 81 110

2 OCL 13 45 84 74 118

3 BINANI INDUSTRIES 28 63 92 55 118

4 VISAKA INDUSTRIES 24 29 89 47 112

5 MANGALAM CEMENT -6 16 58 44 107

6 BIRLA CORP -6 40 69 41 96

7 KCP 4 1 23 37 58

8 JK CEMENT 0 22 27 29 65

9 KAKATIYA CEMENT 4 -5 165 277 223

10 NCL INDUSTRIES 6 -10 29 28 33

11 JK LAKSHMI CEMENT 6 24 43 27 76

12 AMBUJA CEMENTS -4 11 18 25 39

13 ACC -4 5 22 18 37

14 DALMIA BHARAT 21 62 140 165 182

15 INDIA CEMENTS 19 43 85 101 122

Heidelberg remains top performer post budget from 31st March 2016 and rose 110%. The share price has

performed in all the time period.


Shareholding Pattern & Management

Shareholding Pattern Jun-16 Mar-16 Dec-15 Sep-15 Jun-15

Promoter and Promoter Group (%) 69.39 69.39 69.39 69.39 69.39

Indian NIL NIL NIL NIL NIL

Foreign 69.39 69.39 69.39 69.39 69.39

Institutions (%) 17.53 16.90 16.49 16.09 15.03

FII 8.09 7.61 10.03 8.67 8.80

DII 9.45 9.30 6.46 7.42 6.23

Non Institutions (%) 13.08 13.71 14.12 14.52 15.58

Bodies Corporate NIL NIL NIL 1.91 2.58

Others 13.08 13.71 14.12 12.62 13.00

Custodians NIL NIL NIL NIL NIL

Total no. of shares (cr.) 22.66 22.66 22.66 22.66 22.66

Institution has made huge investment

Institutions Holding

Institutions No. of

shareholder Total no.

shares held %

Holding

Mutual Funds/ 35 13771314 6.08

FRANKLIN INDIA SMALLER COMPANIES FUND 1 2560499 1.13

SUNDARAM MUTUAL FUND A/C SUNDARAM SMILE FUND 1 2925023 1.29

Foreign Portfolio Investors 45 18326920 8.09

CAISSE DE DEPOT ET PLACEMENT DU QUEBEC-FIRST STATE INVESTMENTS INTERNA 1 2310201 1.02

JP MORGAN INDIAN INVESTMENT COMPANY (MAURITIUS) LIMITED 1 2975000 1.31

FIRST STATE INVESTMENTS (HONGKONG) LIMITED A/C FIRST STATE INDIAN SUBC 1 4108665 1.81

Financial Institutions/ Banks 18 63,166 0.03

Insurance Companies 6 7241975 3.2

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED 1 3073353 1.36

LIFE INSURANCE CORPORATION OF INDIA 1 3608764 1.59

Total 104 39403375 17.39

As on 30th June 2016 Mutual funds holds 6.08% of total share holding. Total no of 45 Foreign Portfolio Investors are holding

8.09% with 1.83 crs shares. Insurance companies hold 3.20% stake in the company, out of which HDFC Standard Life

Insurance Company Limited holds 1.36%.


Investment Rationale

The Heidelberg Cement Group is a global market leader in aggregates and a prominent player in the fields

of cement, concrete and other downstream activities, ranking as one of the world’s largest manufacturers

of building materials.

The Group employs 52,600 manpower at 2,500 locations in more than 40 countries

The Company increased its capacity to 5.4 million tones p.a. through brown field expansion of its

facilities in Central India in 2013.

The new manufacturing capacity has enabled the Company to increase its market share in Central India

i.e. Madhya Pradesh and Uttar Pradesh and in markets of Bihar, Haryana and Uttarakand

“HeidelbergCement Group has been honoured as the best improver in disclosing environmental

information among 350 largest listed companies in German-Austria-Switzerland region by Carbon

Disclosure Project. HeidelbergCement now ranks among the top 5 companies in the sector of energy and

materials”.

Company’s revenue has jumped by 16.28% OoQ, however YoY revenue rose 6.94%.

Company’s operating profit jumped by 32.21% QoQ and 125.61% YoY.

Net profit has jumped by 8.06% QoQ and huge jump of 683.88% in YoY.

Operating profit margin during last quarter was 13.59%.

Net profit margin during last quarter was 5.58%.

We recommend BUY in HeidelbergCement @134 with the target of 160.

https://www.dynamiclevels.com/en/heidelberg-share-price


Disclaimer: Research Disclaimer and Disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014. Dynamic Equities Pvt. Ltd. is a member of National Stock Exchange of India Ltd. (NSEIL), Bombay Stock Exchange Ltd (BSE), Multi Stock Exchange of India Ltd (MCX-SX) and also a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd.(CDSL). Dynamic is engaged in the business of Stock Broking, Depository Services, Investment Advisory Services and Portfolio Management Services. Dynamic Equities Pvt. Ltd. is holding company of Dynamic Commodities Pvt. Ltd. , a member of Multi Commodities Exchange (MCX) & National Commodity & Derivatives Exchange Ltd.(NCDEX). We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on for certain operational deviations. Answers to the Best of the knowledge and belief of Dynamic/ its Associates/ Research Analyst who prepared this report

DYANMIC/its Associates/ Research Analyst/ his Relative have any financial interest in the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have any other material conflict of interest at the time of publication of the research report or at the time of public appearance? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have managed or co-managed public offering of securities for the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation or other benefits from the Subject Company or third party in connection with the research report? No

DYANMIC/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have been engaged in market making activity for the subject company? No

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