Comments
Prabhudas Lilladher
HeidelbergCement (Buy)
CMP: ₹92.10
Target: ₹125
HeidelbergCement India is a subsidiary of HeidelbergCement Group, Germany. The company has its operations in Central India at Damoh (Madhya Pradesh), Jhansi (Uttar Pradesh) and in Southern India at Ammasandra (Karnataka). The company has increased its capacity to 5.4 million tonnes a year through brown field expansion of its facilities in Central India in 2013.
Heidelberg Cement has witnessed a significant improvement in its operations over the last couple of years with the completion of its expansion-cum-modernisation programme. This, coupled with a strong outlook on region’s demand, absence of any fresh capacity addition (no capacity addition lined up for the next two years) and exit of weak players such as JP Associates, drives our positive outlook on the stock. With EV/tonne of $74.7 and a strong earnings visibility for the next two years, we initiate coverage on the stock.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.