Heidelberg Cement India Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Heidelberg cement results were broadly below our estimate. Revenues declined 1.2% YoY (down 1.4% QoQ) to | 397.1 crore...

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....

Focus on the central region: Heidelberg Cement India Ltd (HCIL) has particular concentration in the central region of the country, which accounts for 90% of its cement sales volumes, while the remaining 10% volume off take is accounted by the South region (Karnataka and Kerala). The demand-supply situation in the central region is expected to remain favorable for cement players, as no new capacity addition is foreseen in this region for the next couple of years. Going forward, we expect HCILs capacity utilization levels to increase from 78% in FY2015 to 86% by FY2017. HCILs volume is expected to increase at a CAGR of 4.4% during FY2015-17. Cement prices in the central region are expected to remain stable and we expect a modest CAGR of 3.5% in prices over FY2015-17 on back of high utilization levels in the region. Cost efficiency measures to improve profitability: Recently HCIL commenced its conveyer belt facility for supply of limestone to its clinkerisation plant in Narsingarh, Damoh (Madhya Pradesh). Earlier the company was using road transportation for this purpose. Adopting the conveyer belt facility has helped HCIL reduce its freight cost by Rs50-60/tonne. Further, HCIL is setting up a 12MW Waste Heat Recovery Plant...

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. The...

HeidelbergCement India Ltd (HCIL) announced better than expected operating results in Q1FY16.VolumesinQ1FY16wereatrecordhighlevelsforHCILwithflattishoperatingcost structure on yoy basis. Better than expected volumes at 1.18mn tns (+14% yoy; +7% qoq)...

Background Heidelberg Cements, 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....

Background Heidelberg Cements, 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...