HeidelbergCement India Ltd (HEIDELBERG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

JK Lakshmi Cem.

Star Cement

Mangalam Cement

India Cements

Birla Corpn.

Orient Cement

Prism Johnson

Sanghi Industrie

Sagar Cements

Heidelberg Cem.

KCP

Why is HeidelbergCement India Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -15.43% of over the last 5 years

Flat results in Sep 25

DEBTORS TURNOVER RATIO(HY) Lowest at 3.34 times
PBT LESS OI(Q) At Rs 24.51 cr has Fallen at -14.1% (vs previous 4Q average)
PAT(Q) At Rs 24.93 cr has Fallen at -13.3% (vs previous 4Q average)

With ROE of 9.8, it has a Very Expensive valuation with a 3.1 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -21.52%, its profits have fallen by -1.5%
At the current price, the company has a high dividend yield of 3.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.52% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cement & Cement Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Heidelberg Cem. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Heidelberg Cem.

-21.52%

-0.87

24.71%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.72%

EBIT Growth (5y)

-15.43%

EBIT to Interest (avg)

6.05

Debt to EBITDA (avg)

0.53

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.41

Tax Ratio

26.47%

Dividend Payout Ratio

108.08%

Pledged Shares

Institutional Holding

15.84%

ROCE (avg)

19.02%

ROE (avg)

12.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.08

EV to EBIT

23.11

EV to EBITDA

13.76

EV to Capital Employed

3.73

EV to Sales

1.64

PEG Ratio

Dividend Yield

3.94%

ROCE (Latest)

16.13%

ROE (Latest)

9.83%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

PAT(9M)

Higher at Rs 123.61 Cr

-8What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.34 times

PBT LESS OI(Q)

At Rs 24.51 cr has Fallen at -14.1% (vs previous 4Q average

PAT(Q)

At Rs 24.93 cr has Fallen at -13.3% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 0.54 times

NET SALES(Q)

At Rs 511.66 cr has Fallen at -7.6% (vs previous 4Q average

Loading Valuation Snapshot...

Here's what is not working for Heidelberg Cem.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 24.51 cr has Fallen at -14.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 28.54 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 24.93 cr has Fallen at -13.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 28.77 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 3.34 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Net Sales - Quarterly

At Rs 511.66 cr has Fallen at -7.6% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 553.56 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.54 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio