Heidelberg Cement India Ltd. share price target

Background Heidelberg Cements (HCIL), erstwhile Mysore Cements set up by Birla group in 1958 is now a subsidiary of Heidelberg AG, the world's third largest cement manufacturer. The company manufactures portland cement through its three plants located at Ammasandra, Karnataka (0.6 MTPA), Damoh, Madhya Pradesh (2.1 MTPA) and Jhansi, Uttar Pradesh (2.7 MTPA). The company also caters to Bangalore, Mumbai and Pune apart from MP and UP....

Heidelberg Cement reported an operationally weak set of Q3FY17 numbers. Revenues (excluding excise) declined 3.7% YoY to | 387.8 crore (vs. I-direct estimate of | 392.1 crore) led by 3.7% YoY decline in volumes to 1.05 MT (vs. I-direct estimate of 1.03 MT) while realisation was flat YoY at | 3,693 (below I-direct estimate of | 3,807) EBITDA margin declined from 14.3% to 10.1% (below I-direct estimate of 12.3%) in Q3FY17 mainly led by a rise in employee expenses (up 11.4% YoY) and higher other expenses (up 11.1%...

HCIL's revenue declined by 3% yoy to Rs3.84 primarily due to 5.7% yoy decline in sales volume, which stood at 1.0mnT (-5.7% yoy & -18% qoq). Remaining firm, average realization improved by 2.7% yoy & 1.5% qoq to Rs3,842/tonne due to healthy pricing scenario in Central region. We envisage its sales volume to remain under pressure...

Heidelberg Cement's Q2FY17 results were lower than our estimates on the revenue and profitability front. Revenues (excluding excise duty) declined 3.1% YoY to | 384.2 crore (below I-direct estimate of |419.7 crore) led by 5.7% YoY decline in volumes to 1 MT (vs. Idirect estimate of 1.1 MT) while realisation increased 2.7% YoY to | 3842.2 (vs. I-direct estimate of | 3815.0) EBITDA margin increased from 11.1% to 15.6% (vs. I-direct estimate of 16.8%) in Q2FY17 mainly led by decline in RM expenses and lower power and fuel cost. EBITDA/tonne increased 43.7% YoY to...

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...

Background Heidelberg Cements (HCIL), erstwhile Mysore Cements set up by Birla group in 1958 is now a subsidiary of Heidelberg AG, the world's third largest cement manufacturer. The company manufactures portland cement through its three plants located at Ammasandra, Karnataka (0.6 MTPA), Damoh, Madhya Pradesh (2.1 MTPA) and Jhansi, Uttar Pradesh (2.7 MTPA). The company also caters to Bangalore, Mumbai and Pune apart from MP and UP....

ICICI Securities Ltd | Retail Equity Research Heidelberg cement results were broadly above our estimate. Revenues increased 6.9% YoY to | 461.8 crore (in line with I-direct estimate of | 453.3 crore) mainly led by 3.4% YoY increase in volumes and 3.4% YoY increase in realisation (mainly due to healthy...

9 Substantial savings delivered in power and fuel costs driven by start of wasteheat recoverysystems.Powerandfuelcostspertonneweredown14%yoy,16%qoq 9 Ourpricetargetismet;butwecontinuetoseevalue,givenattractivevaluations.With...

Background Heidelberg Cements (HCIL), erstwhile Mysore Cements set up by Birla group in 1958 is now a subsidiary of Heidelberg AG, the world's third largest cement manufacturer. The company manufactures portland cement through its three plants located at Ammasandra, Karnataka (0.6 MTPA), Damoh, Madhya Pradesh (2.0 MTPA) and Jhansi, Uttar Pradesh (2.7 MTPA). The company also caters to Bangalore, Mumbai and Pune apart from MP and UP....

8 Q4 operating results were marginally lower than our expectations/consensus expectationsby10%/5%,largelydrivenbylowerthanexpectedvolumes. 9 CostsavingshavesustainedwellinQ4andarelikelytoimproveinFY17....