HDFC Securities: Heidelberg Cement’s  Superior Margin Sustained; Maintain ‘Buy’ Call
A construction worker holds a trowel of cement as he lays bricks. (Photographer Simon Dawson/Bloomberg)

HDFC Securities: Heidelberg Cement’s Superior Margin Sustained; Maintain ‘Buy’ Call

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

HDFC Securities Heidelberg Cement Q2FY21 Results Update.pdf


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