HeidelbergCement India Downgraded to 'Sell' by MarketsMOJO Due to Poor Long-Term Growth

HeidelbergCement India, a smallcap company in the cement industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 21, 2024. This decision was based on the company's poor long-term growth, with net sales growing at an annual rate of -0.13% and operating profit declining by -17.71% over the last 5 years.
In addition, the company declared negative results in September 2024 after flat results in June 2024. The profit after tax (Q) has fallen by -71.1%, while the operating profit to interest (Q) is at its lowest at 4.39 times. The debtors turnover ratio (HY) is also at its lowest at 40.89 times.

Furthermore, HeidelbergCement India has underperformed the market in the last 1 year, with a return of only 9.31% compared to the market (BSE 500) returns of 23.25%.

Other factors to consider include the company's low debt to equity ratio (avg) of 0 times and its technical position in a mildly bullish range. However, there are multiple bullish factors for the stock, such as MACD, KST, and OBV.

With a return on equity of 9.8%, the stock is fairly valued with a price to book value of 3.6. However, it is currently trading at a premium compared to its average historical valuations. Additionally, while the stock has generated a return of 9.31% in the past year, its profits have only risen by 1.6%, resulting in a high PEG ratio of 22.7. On the positive side, the company offers a high dividend yield of 3.8%.

It is worth noting that the majority shareholders of HeidelbergCement India are the promoters themselves. As a smallcap company in the cement industry, investors should carefully consider the company's performance and financials before making any investment decisions.