Moneycontrol Be a Pro
Get App
Last Updated : Aug 01, 2019 02:05 PM IST | Source: Moneycontrol.com

Accumulate Heidelberg Cement India; target of Rs 220: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Heidelberg Cement India with a target price of Rs 220 in its research report dated July 31, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Heidelberg Cement India


Heidelberg cement (HEIM) reported strong earnings with 6%/12% beat on ours/consensus PAT estimates. Beat was primarily driven by lower than expected costs and better than expected volume growth. Unitary EBITDA rose 31% YoY to Rs1,200 (PLe:Rs1,133). Exhaustion of capacity remains Achilles heel for HEIM. To address the same, it is expanding capacity by 0.5mnt through debottlenecking which would support 4-5% YoY growth in volumes for next couple of years. In addition, it is also exploring inorganic route to expand volumes.


Outlook


Despite exhausted capacity, HIEM maintained its strong earnings growth trajectory on the back of steep increase in margins. Led by better outlook on Central region, quality operations and attractive valuations, we maintain Accumulate with TP of Rs220, EV/EBITDA of 9x FY21e.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.
First Published on Aug 1, 2019 02:05 pm
Loading...
Follow us on
Available On