Chola Securities is bullish on Heidelberg Cements has recommended buy rating on the stock with a target price of Rs 186 in its research report dated July 31, 2018.
We feel the competitive pressure will continue to remain high in the northern and western regions. However, the companies with strong presence in east, central and south (specifically Andhra and Telangana) region will benefit from an improved demand environment in these geographies.
The railway freight has been recently hiked to 20%, so margins of Heidelberg would be under pressure going forward because it has not been to pass any significant cost increases to its customers in the last few quarters.
Ashish Guha, MD & CEO, Heidelberg Cements in an interview to CNBC-TV18 spoke about the financial performance of the company and the road ahead.