HDFC Securities: Heidelberg Cement’s Superior Margin Sustained; Maintain ‘Buy’ Call
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HDFC Securities Report
Heidelberg Cement India Ltd.’s revenue fell 2% YoY to Rs 5.14 billion, as sales volume fell 2% (focus on better pricing sales).
However, healthy realisation and low opex further boosted Ebitda/ adjusted profit after tax by 3/7% YoY to Rs 1.26/0.62 billion.
Balance sheet remains strong – with negative cash conversion of 22 days and net cash on books increasing to approximately Rs 1.8 billion.
We continue to like the company for its retail presence in the lucrative central market, increased volume growth visibility, superior margin and return ratios and a net cash balance sheet.
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