Buy Heidelberg Cement India, target price Rs 230: ICICI Securities
Heidelberg Cement India Ltd., incorporated in the year 1958, is a Mid Cap company (having a market cap of Rs 4057.51 Crore) operating in Cement sector.
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Promoters held 69.4 per cent stake in the company as of June 30, 2020, while FIIs held 9.7 per cent, DIIs 6.9 per cent and public and others 14 per cent.
ICICI Securities has given buy rating to Heidelberg Cement with a target price of Rs 230. The share price moved down by 0.97 per cent from its previous close of Rs 180.45. The stock’s last traded price is Rs 179.10.
Heidelberg Cement India Ltd., incorporated in the year 1958, is a Mid Cap company (having a market cap of Rs 4057.51 Crore) operating in Cement sector.
Financials For the quarter ended 30-06-2020, the company reported a Standalone sales of Rs 406.27 Crore, down 20.23 % from last quarter Sales of Rs 509.29 Crore and down -30.25 % from last year same quarter Sales of Rs 582.44 Crore. Company reported net profit after tax of Rs 48.94 Crore in latest quarter.
Investment Rationale Given no major organic expansion plans over FY21- 22E, net cash is likely to increase to Rs6.8bn by FY22E from the current Rs1.6bn. It initiates with a BUY rating and target price of Rs230/share (7xSep’22E EV/E). Promoter/FII Holdings Promoters held 69.4 per cent stake in the company as of June 30, 2020, while FIIs held 9.7 per cent, DIIs 6.9 per cent and public and others 14 per cent.
