dynamic levels heidelberg cement ltd
TRANSCRIPT
Page 2 Source: Company, www.dynamiclevels.com
Heidelberg Cement - Cement for better building
Company Overview and Stock price ……………………………………….……3
Product Overview……………………………………………………………….….…..4
Industry Outlook………………………………………………………………………..6
Company Financial….……..……….…………….……………………….….………8
Balance Sheet…………………………………………..………….………….….……..9
Cash Flow……………..………………………………..…………….………….……..10
Key Financial Ratios………………………………………………………………….10
Peer Comparison…………….…………………………………………….……..…..11
Shareholding Pattern…………………………………………..……………....……13
Investment Rationale………………………………………...………….......…....14
Disclaimer……………………………………………………………………………..…15
Page 3 Source: Company, www.dynamiclevels.com
Company’s Overview and Stock Price Heidelberg Cement offers a wide range of high quality products.
Alongside classical building materials, they produce special building
products for diverse applications. Their core activities include the
production and distribution of cement and aggregates, the two essential
raw materials for the manufacture of concrete. Their product range is
substantially complemented by downstream ready-mixed concrete and
asphalt activities. Furthermore, Heidelberg Cement offers services such
as worldwide trading in cement and coal by sea. Heidelberg Cement
deliberately focuses on vertical.
Due to the heavy weight of cement and aggregates compared with their
price, production is usually located in close proximity to the sales
markets. The cement transportation radius by road normally does not
exceed 200 km. The delivery radius for aggregates and ready-mixed
concrete by road is less than 100 km. Consequently, they have local
production sites in the around 60 countries in which they offer building
materials. The company currently operates more than 3,000 production
sites worldwide.
EXCHANGE SYMBOL HEIDELBERG
Current Price * (Rs.) 134.45
Face Value (Rs.) 10
52 Week High (Rs.) 144.90 (23-Aug-16)
52 Week Low (Rs.) 59.65 (17-Feb-16)
Life Time high (Rs.) 144.90 (23-Aug-16)
Life Time low (Rs.) 4.35 (12-Mar-03)
Average Daily Movement 5.32
Average Volume 278396
1 Month Return (%) 8.95
P/E Ratio (x) 50.64
Book Value 39.62
Market Cap 3117.06 (Cr)
% of Promoter’s pledged 0
This is a 1 year weekly chart of Heidelberg Cement showing
momentum above 120 levels.
COMPANY PROFILE OF HEIDELBERG, NSE, INDIA
Date of Incorporation 13-May-1958
Date of Listing 22-Dec-1994
Management
Name Designation
Pradeep V Bhide Independent Director
S Krishna Kumar Independent Director
Jamshed Naval Cooper Managing Director
P G Mankad Non Executive Chairman
Albert Scheuer Non Executive Director
Juan-Francisco Defalque Non Executive Director
Kevin Gerard Gluskie Non Executive Director
Soek Peng Sim Non Executive Director
Sushil Kumar Tiwari Whole Time Director
Registered Office Address
9th Floor, Infinity Tower C,DLF Cyber City, Phase-II,122002,Gurgaon,Haryana,India
Website
http://www.mycemco.com
Page 4 Source: Company, www.dynamiclevels.com
Product overview
Heidelberg Cement Group:
The Heidelberg Cement Group is a global market leader in aggregates
and a prominent player in the fields of cement, concrete and other
downstream activities, ranking as one of the world’s largest
manufacturers of building materials. The Group employs 52,600
manpower at 2,500 locations in more than 40 countries.
Although such products usually go un-noticed many a time, these are an
integral part of day to day lives be it homes, offices, factories, schools,
streets, motorways, bridges, tunnels, water supply and sewage systems.
Making the company proud and it also creates more responsible to
continuously deliver products of highest standard that would over the
coming years perform exceptionally under all weather conditions.
The company’s customers, employees, shareholders as well as local
partners across the globe form the core of their corporate governance.
Their concern for the environment with the emphasis on sustainability
continues to be their driving objective. They have obligated them to
build on the three pillars of ecology, economy and social responsibility.
Heidelberg Cement India:
Heidelberg Cement India Limited (HCIL / Company) is a subsidiary of
Heidelberg Cement 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
increased its capacity to 5.4 million tones p.a. through brown field
expansion of its facilities in Central India in 2013.
The new manufacturing capacity has enabled the Company to increase
its market share in Central India i.e. Madhya Pradesh and Uttar Pradesh
and in markets of Bihar, Haryana and Uttarakhand. With the help of
committed sales efforts supported by quality products, the Company has
carved a niche for its brand "mycem" in new markets and has further
improved its brand positioning in the existing ones.
Focus on quality and customer satisfaction
Being part of a global giant in the field of cement industry it is our
continuous endeavor to perform on strict standards. It is the excellent
quality of our products and the continuous delivery of customer
satisfaction, HCIL would not have achieved the leading position in the
country. Within the company, every employee
is aware that quality of its products and services
hold the key to our customers' heart. Delivering
customer satisfaction has become a way of life for
them in HCIL.
Brand
mycem
mycempower
mycem ConcreteMAX
Page 5 Source: Company, www.dynamiclevels.com
PPC
PPC or Portland Pozzolana Cement is a kind of Blended Cement which
is produced by grinding the Portland clinker with gypsum and
pozzolanic materials in measured proportions or by blending Ordinary
Portland Cement (OPC), with Pozzolanic materials in certain
proportions.
Pozzolana is any natural or artificial material containing silica in a
reactive form. The pozzolana is in a finely divided state to allowsilica to
combine with calcium hydroxide (liberated by the hydrating Portland
cement) in the presence of water forming stable Calcium Silicates
Hydrate that have the cementitious properties. The pozzolanic materials
commonly used are
Calcined clay
Fly ash
Silica fumes
The Indian standards for Portland Pozzolana Cement have been issued
in two parts based on the type of pozzolanic materials to be used in
manufacturing of Portland Pozzolana Cement as given below:
IS 1489 (Part 1) 1991, Portland Pozzolana Cement –
specification (fly ash based)
IS 1489 (Part 2) 1991, Portland Pozzolana Cement –
specification (Calcined clay based) the quality of flyash or
calcined clay to be used in manufacturing of PPC is also
specified by BIS in the following standards:
IS 3812 1981 – specification for flyash as pozzolana and
admixture IS 1344 1981 – specification for calcined clay
pozzolana.
In view of the availability of good quality fly ash in
abundant quantity, the use of calcined clay based pozzolana
cement is progressively decreasing.
PSC
PSC or Portland Slag cement is manufactured by either grinding the
Portland clinker with gypsum and granulated slag or blending the
ground granulated blast furnace slag (GGBS) with Ordinary Portland
cement by means of mechanical blenders. Normal composition of
portland cement is 30 % clinker, 5 % gypsum and 70 % blast furnace
granulated slag. The quality of slag used in cement manufacturing is
governed by IS 12089:1987.
PSC has been voted as the most suitable
cement for mass construction because of its
low heat of hydration. Slow hydration of PSC
liberates the C-S-H gel over a longer time
period thus reducing the pores / porosity of
concrete. The dense concrete is more suitable
for structures in the coastal regions as the
flow of water inside the concrete is restricted
resulting in the increase durability of the
structure. PSC (in required proportion) offers
an improved resistance to sulphate attack
from the sea water because of low water
permeability, depleted quantum of
Ca(OH)2 and C3A content.
Page 6 Source: Company, www.dynamiclevels.com
Industry Outlook
India is the second largest producer of cement in the world. No wonder,
India's cement industry is a vital part of its economy, providing
employment to more than a million people, directly or indirectly. Ever
since it was deregulated in 1982, the Indian cement industry has
attracted huge investments, both from Indian as well as foreign
investors.
India has a lot of potential for development in the infrastructure and
construction sector and the cement sector is expected to largely benefit
from it. Some of the recent major government initiatives such as
development of 98 smart cities are expected to provide a major boost to
the sector.
Expecting such developments in the country and aided by suitable
government foreign policies, several foreign players such as Lafarge-
Holcim, Heidelberg Cement, and Vicat have invested in the country in
the recent past. A significant factor which aids the growth of this sector
is the ready availability of the raw materials for making cement, such as
limestone and coal.
Market Size
Cement demand in India is expected to increase due to government’s
push for large infrastructure projects, leading to 45 million tonnes of
cement needed in the next three to four years.
India's cement demand is expected to reach
550-600 Million Tonnes Per Annum (MTPA)
by 2025. The housing sector is the biggest
demand driver of cement, accounting for
about 67 per cent of the total consumption in
India. The other major consumers of cement
include infrastructure at 13 per cent,
commercial construction at 11 per cent and
industrial construction at nine per cent.
To meet the rise in demand, cement
companies are expected to add 56 million
tonnes (MT) capacity over the next three
years. The cement capacity in India may
register a growth of eight per cent by next
year end to 395 MT from the current level of
366 MT. It may increase further to 421 MT
by the end of 2017. The country's per capita
consumption stands at around 190 kg.
Page 7 Source: Company, www.dynamiclevels.com
Cement production in India growing at a fast pace
Cement production increased at a CAGR of 6.7 per cent to 270.32
million tonnes over FY07–15.
As per the 12th Five Year Plan, production is expected to reach 407
million tonnes by FY17.
Availability of fly-ash (from thermal power plants) and use of
advance technology has increased production of blended cement.
Availability of fly-ash (from thermal power plants) and use of
advance technology has increased production of blended cement.
The environment-friendly blended cement is more cost-efficient to
produce, as it requires lesser input of clinker and energy.
Road Ahead
The eastern states of India are likely to be the newer and virgin markets
for cement companies and could contribute to their bottom line in
future. In the next 10 years, India could become the main exporter of
clinker and gray cement to the Middle East, Africa, and other
developing nations of the world. Cement plants near the ports, for
instance the plants in Gujarat and Visakhapatnam, will have an added
advantage for exports and will logistically be well armed to face stiff
competition from cement plants in the interior of the country.
A large number of foreign players are also expected to enter the cement
sector, owing to the profit margins and steady demand. In future,
domestic cement companies could go for global listings either through
the FCCB route or the GDR route.
With help from the government in terms of friendlier laws, lower
taxation, and increased infrastructure spending, the sector will grow and
take India’s economy forward along with it.
Page 8 Source: Company, www.dynamiclevels.com
Company Financials
10
In Cr. Jun-16
Quarterly Mar-16
Quarterly Dec-15
Quarterly Sep-15
Quarterly Jun-15
Quarterly Mar-16 Annual
Net Sales/Income from operations 461.81 397.14 402.72 396.44 431.83 1,628.13
Other Operating Income 8.68 8.55 5.29 6.25 7.09 27.18
Total Income From Operations 470.49 405.69 408.01 402.69 438.92 1,655.31
Increase/Decrease in Stocks 32.11 -23.49 7.83 -4.82 11.14 -9.34
Consumption of Raw Materials 85.13 86.92 82.80 80.33 92.73 342.78
Power And Fuel 102.71 111.23 107.12 117.76 115.93 452.04
Employees Cost 26.57 30.70 24.60 24.68 25.65 105.63
Depreciation 24.66 24.47 23.22 22.92 23.39 94.00
Other Expenses 135.37 127.50 122.78 134.50 141.74 526.52
Total Expenditure 406.55 357.33 368.35 375.37 410.58 1,511.63
Operating Profit 63.94 48.36 39.66 27.32 28.34 143.68
Other Income 1.02 4.46 3.57 3.52 3.93 15.48
P/L Before Int., Excpt. Items & Tax 64.96 52.82 43.23 30.84 32.27 159.16
Interest 24.64 26.83 27.49 27.46 27.01 108.79
P/L Before Exceptional Items & Tax 40.32 25.99 15.74 3.38 5.26 50.37
Exceptional Item -- -- -- -- -- --
P/L Before Tax 40.32 25.99 15.74 3.38 5.26 50.37
Tax 14.06 1.69 6.84 1.28 1.91 11.72
P/L After Tax from Ordinary Activities 26.26 24.30 8.90 2.10 3.35 38.65
PAT 26.26 24.30 8.90 2.10 3.35 38.65
Equity Share Capital 226.62 226.62 226.62 226.62 226.62 226.62
Reserves -- -- -- -- -- 656.69
EPS (Rs.) [After Extraordinary items] 1.16 1.07 0.39 0.09 0.15 1.71
Company’s revenue has jumped by 16.28% OoQ, however YoY revenue rose 6.94%.
Company’s operating profit jumped by 32.21% QoQ and 125.61% YoY.
Net profit has jumped by 8.06% QoQ and huge jump of 683.88% in YoY.
Operating profit margin during last quarter was 13.59%.
Net profit margin during last quarter was 5.58%.
Page 9 Source: Company, www.dynamiclevels.com
Balance sheet
In Cr. Mar-16
Annual Mar-15 Annual
Dec-13 Annual
Dec-12 Annual
Dec-11 Annual
EQUITIES AND LIABILITIES
SHAREHOLDERS FUNDS
Equity Share Capital 226.62 226.62 226.62 226.62 226.62
Total Share Capital 226.62 226.62 226.62 226.62 226.62
Revaluation Reserves 12.31 12.31 13.34 14.32 15.66
Reserves and Surplus 656.69 632.63 593.40 605.70 573.30
Total Reserves and Surplus 669.00 644.94 606.74 620.02 588.96
Total Share holder’s Funds 895.62 871.56 833.36 846.64 815.58
NON-CURRENT LIABILITIES
Long Term Borrowings 686.09 924.89 1,292.62 985.82 776.91
Deferred Tax Liabilities [Net] 74.89 65.22 4.96 37.77 33.09
Other Long Term Liabilities 3.02 2.93 4.68 5.01 3.72
Long Term Provisions 19.16 20.76 15.09 13.80 10.89
Total Non-Current Liabilities 783.16 1,013.80 1,317.35 1,042.40 824.61
CURRENT LIABILITIES
Short Term Borrowings 70.00 0.00 64.20 45.00 0.00
Trade Payables 185.96 190.99 190.11 148.62 140.74
Other Current Liabilities 506.94 552.52 202.25 245.56 273.40
Short Term Provisions 207.48 190.84 151.34 126.91 101.28
Total Current Liabilities 970.38 934.35 607.90 566.09 515.42
Total Capital And Liabilities 2,649.16 2,819.71 2,758.61 2,455.13 2,155.61
ASSETS
NON-CURRENT ASSETS
Tangible Assets 1,899.81 1,788.81 1,786.16 372.17 345.03
Intangible Assets 3.69 4.96 1.16 1.86 2.59
Capital Work-In-Progress 56.05 127.42 166.98 1,517.07 1,054.41
Fixed Assets 1,959.55 1,921.19 1,954.30 1,891.10 1,402.03
Long Term Loans And Advances 64.93 54.67 30.15 10.01 58.03
Other Non-Current Assets 27.46 103.37 199.43 83.85 59.54
Total Non-Current Assets 2,051.94 2,079.23 2,183.88 1,984.96 1,519.60
CURRENT ASSETS
Inventories 178.21 191.00 198.92 165.04 110.68
Trade Receivables 25.76 19.14 30.60 21.61 24.26
Cash And Cash Equivalents 7.77 146.26 114.14 73.18 310.71
Short Term Loans And Advances 302.73 296.69 230.62 210.07 189.71
Other Current Assets 82.75 87.39 0.45 0.27 0.65
Total Current Assets 597.22 740.48 574.73 470.17 636.01
Total Assets 2,649.16 2,819.71 2,758.61 2,455.13 2,155.61
Page 10 Source: Company, www.dynamiclevels.com
Cash Flow
In Cr. Mar-16 Annual
Mar-15 Annual
Dec-13 Annual
Dec-12 Annual
Dec-11 Annual
Net Profit/Loss Before Extraordinary Items And Tax 50.37 119.83 -85.38 45.66 42.36
Net Cash Flow From Operating Activities 256.37 237.55 119.39 50.09 52.07
Net Cash Used In Investing Activities -108.07 6.19 -219.70 -431.46 -629.72
Net Cash Used From Financing Activities -286.79 -211.62 141.27 143.84 689.89
Foreign Exchange Gains / Losses 0.00 0.00 0.00 0.00 0.00
Adjustments on Amalgamation / Merger / Demerger / Others 0.00 0.00 0.00 0.00 0.00
Net Inc/Dec In Cash And Cash Equivalents -138.49 32.12 40.96 -237.53 112.24
Cash And Cash Equivalents Begin of Year 146.26 114.14 73.18 310.71 198.47
Cash And Cash Equivalents End Of Year 7.77 146.26 114.14 73.18 310.71
Ratio Analysis 16-Mar 15-Mar 13-Dec 12-Dec
Per Share Ratios
Basic EPS (Rs.) 1.71 2.63 -1.80 1.36
Diluted EPS (Rs.) 1.71 2.63 -1.80 1.36
Cash EPS (Rs.) 5.85 8.7 2.13 2.75
Book Value 38.98 37.92 36.18 36.73
Profitability Ratios
PBDIT Margin (%) 15.29 16.43 9.04 7.94
PBIT Margin (%) 9.61 9.7 1.67 5.08
PBT Margin (%) 3.04 5.86 -7.06 4.13
Net Profit Margin (%) 2.33 2.91 -3.36 2.79
Return on Networth / Equity (%) 4.37 6.92 0.00 3.70
Return on Capital Employed (%) 2.3 3.15 -1.89 1.63
Return on Assets (%) 1.45 2.11 -1.47 1.25
Asset Turnover Ratio (%) 62.48 72.49 43.82 44.96
Liquidity Ratios
Current Ratio (X) 0.62 0.79 0.95 0.83
Quick Ratio (X) 0.43 0.59 0.62 0.54
Inventory Turnover Ratio (X) 9.29 10.7 6.08 6.69
Valuation Ratios
Enterprise Value (Cr.) 2,586.21 2,470.35 2,090.24 2,233.51
Market Cap/Net Operating Revenue (X) 1.11 0.83 0.7 1.16
Price/BV (X) 2.08 1.97 1.03 1.53
Price/Net Operating Revenue 1.11 0.83 0.7 1.16
Earnings Yield 0.02 0.04 -0.05 0.02
Page 11 Source: Company, www.dynamiclevels.com
Peer Comparison
Peer Comparison on Market Liquidity and Volume
SL INSTRUMENT Price Avg. Volume Market Cap (Rs. in Cr)
1 ACC 1653 276826 30540
2 AMBUJA CEMENTS 267 2417560 52103
3 BINANI INDUSTRIES 113 384063 375
4 BIRLA CORP 655 84047 4924
5 DALMIA BHARAT 1705 85757 15547
6 HEIDELBERG* 130 291262 3016
7 INDIA CEMENTS 152 8422181 4594
8 JK CEMENT 794 24152 5525
9 JK LAKSHMI CEMENT 468 106163 5529
10 KAKATIYA CEMENT 396 108327 300
11 KCP 95 199129 1213
12 MANGALAM CEMENT 334 57123 891
13 NCL INDUSTRIES 121 171201 441
14 OCL 879 20612 5009
17 VISAKA INDUSTRIES 194 179972 310
Company has good average volume and market capitalization this give liquidity to the share price of stock.
Peer Comparison on Leverage Position
SL INSTRUMENT Price % Pledged Debt Equity Ratio (X) Int. Coverage Ratio (X)
1 ACC 1653 0.00 0.00 25.64
2 AMBUJA CEMENTS 267 0.00 0.00 20.5
3 BINANI INDUSTRIES 113 0.00 -4.04 0.55
4 BIRLA CORP 655 0.00 0.35 5.51
5 DALMIA BHARAT 1705 0.00 2.23 2.4
6 HEIDELBERG* 130 0.00 0.86 2.33
7 INDIA CEMENTS 152 76.04 0.83 2.12
8 JK CEMENT 794 0.00 1.92 1.96
9 JK LAKSHMI CEMENT 468 0.00 1.52 1.70
10 KAKATIYA CEMENT 396 4.43 0.19 21.12
11 KCP 95 7.21 0.63 4.63
12 MANGALAM CEMENT 334 0.00 0.7 1.17
13 NCL INDUSTRIES 121 83.05 0.52 4.06
14 OCL 879 68.1 0.78 4.43
15 VISAKA INDUSTRIES 194 0.00 0.86 4.60
Heidelberg has average debt to equity ratio of 0.86 and interest coverage ratio of 2.33 shows that company
can manage its debt better.
Page 12 Source: Company, www.dynamiclevels.com
Peer Comparison on Profitability and FII Holding.
SL INSTRUMENT Price % FII
Holding P/E Ratio
(X) PAT JUN' 16 PAT MAR' 16 PAT DEC' 15 PAT JUN' 15
1 ACC 1653 15.71 45 237.23 223.47 99.62 128.89
2 AMBUJA CEMENTS 267 20.26 54 399.51 303.76 109.96 226.35
3 BINANI INDUSTRIES 113 0 18 0.83 19.43 1.15 -3.99
4 BIRLA CORP 655 1.23 21 94.33 115.66 6.57 16.64
5 DALMIA BHARAT 1705 7.88 64 118.91 160.44 27.33 56.77
6 HEIDELBERG* 130 8.09 49 26.26 24.3 8.9 3.35
7 INDIA CEMENTS 152 24.22 32 43.98 51.21 5.46 37.8
8 JK CEMENT 794 1.55 34 60.85 70.56 17.09 0.16
9 JK LAKSHMI CEMENT 468 12.57 94 28.72 48.38 -3.67 -23.48
10 KAKATIYA CEMENT 396 0.36 9 6.97 9.1 11.75 -3.37
11 KCP 95 0.15 101 3.24 -1.75 5.26 34.18
12 MANGALAM CEMENT 334 1.88 42 22.59 14.1 -0.21 -18.84
13 NCL INDUSTRIES 121 0 10 9.14 11.6 6.17 20.34
14 OCL 879 2.17 17 105.84 133.53 37.07 48.82
15 VISAKA INDUSTRIES 194 2.89 11 16.62 8.93 1.11 13.62
Cement sector PE multiple is 40 and Heidelberg is trading at 49 which is quite expensive but with its varied product it can
attract further investment similar to big companies like Dalmia Bharat and JK lakshmi Cement.
Peer Comparison on Performance
SL INSTRUMENT 1Month % 3Month % 6Month % 1Year % % Movt Post
Budget
1 HEIDELBERG* 0 28 70 81 110
2 OCL 13 45 84 74 118
3 BINANI INDUSTRIES 28 63 92 55 118
4 VISAKA INDUSTRIES 24 29 89 47 112
5 MANGALAM CEMENT -6 16 58 44 107
6 BIRLA CORP -6 40 69 41 96
7 KCP 4 1 23 37 58
8 JK CEMENT 0 22 27 29 65
9 KAKATIYA CEMENT 4 -5 165 277 223
10 NCL INDUSTRIES 6 -10 29 28 33
11 JK LAKSHMI CEMENT 6 24 43 27 76
12 AMBUJA CEMENTS -4 11 18 25 39
13 ACC -4 5 22 18 37
14 DALMIA BHARAT 21 62 140 165 182
15 INDIA CEMENTS 19 43 85 101 122
Heidelberg remains top performer post budget from 31st March 2016 and rose 110%. The share price has
performed in all the time period.
Page 13 Source: Company, www.dynamiclevels.com
Shareholding Pattern & Management
Shareholding Pattern Jun-16 Mar-16 Dec-15 Sep-15 Jun-15
Promoter and Promoter Group (%) 69.39 69.39 69.39 69.39 69.39
Indian NIL NIL NIL NIL NIL
Foreign 69.39 69.39 69.39 69.39 69.39
Institutions (%) 17.53 16.90 16.49 16.09 15.03
FII 8.09 7.61 10.03 8.67 8.80
DII 9.45 9.30 6.46 7.42 6.23
Non Institutions (%) 13.08 13.71 14.12 14.52 15.58
Bodies Corporate NIL NIL NIL 1.91 2.58
Others 13.08 13.71 14.12 12.62 13.00
Custodians NIL NIL NIL NIL NIL
Total no. of shares (cr.) 22.66 22.66 22.66 22.66 22.66
Institution has made huge investment
Institutions Holding
Institutions No. of
shareholder Total no.
shares held %
Holding
Mutual Funds/ 35 13771314 6.08
FRANKLIN INDIA SMALLER COMPANIES FUND 1 2560499 1.13
SUNDARAM MUTUAL FUND A/C SUNDARAM SMILE FUND 1 2925023 1.29
Foreign Portfolio Investors 45 18326920 8.09
CAISSE DE DEPOT ET PLACEMENT DU QUEBEC-FIRST STATE INVESTMENTS INTERNA 1 2310201 1.02
JP MORGAN INDIAN INVESTMENT COMPANY (MAURITIUS) LIMITED 1 2975000 1.31
FIRST STATE INVESTMENTS (HONGKONG) LIMITED A/C FIRST STATE INDIAN SUBC 1 4108665 1.81
Financial Institutions/ Banks 18 63,166 0.03
Insurance Companies 6 7241975 3.2
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED 1 3073353 1.36
LIFE INSURANCE CORPORATION OF INDIA 1 3608764 1.59
Total 104 39403375 17.39
As on 30th June 2016 Mutual funds holds 6.08% of total share holding. Total no of 45 Foreign Portfolio Investors are holding
8.09% with 1.83 crs shares. Insurance companies hold 3.20% stake in the company, out of which HDFC Standard Life
Insurance Company Limited holds 1.36%.
Page 14 Source: Company, www.dynamiclevels.com
Investment Rationale
The Heidelberg Cement Group is a global market leader in aggregates and a prominent player in the fields
of cement, concrete and other downstream activities, ranking as one of the world’s largest manufacturers
of building materials.
The Group employs 52,600 manpower at 2,500 locations in more than 40 countries
The Company increased its capacity to 5.4 million tones p.a. through brown field expansion of its
facilities in Central India in 2013.
The new manufacturing capacity has enabled the Company to increase its market share in Central India
i.e. Madhya Pradesh and Uttar Pradesh and in markets of Bihar, Haryana and Uttarakand
“HeidelbergCement Group has been honoured as the best improver in disclosing environmental
information among 350 largest listed companies in German-Austria-Switzerland region by Carbon
Disclosure Project. HeidelbergCement now ranks among the top 5 companies in the sector of energy and
materials”.
Company’s revenue has jumped by 16.28% OoQ, however YoY revenue rose 6.94%.
Company’s operating profit jumped by 32.21% QoQ and 125.61% YoY.
Net profit has jumped by 8.06% QoQ and huge jump of 683.88% in YoY.
Operating profit margin during last quarter was 13.59%.
Net profit margin during last quarter was 5.58%.
We recommend BUY in HeidelbergCement @134 with the target of 160.
Page 15 Source: Company, www.dynamiclevels.com
Disclaimer: Research Disclaimer and Disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014. Dynamic Equities Pvt. Ltd. is a member of National Stock Exchange of India Ltd. (NSEIL), Bombay Stock Exchange Ltd (BSE), Multi Stock Exchange of India Ltd (MCX-SX) and also a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd.(CDSL). Dynamic is engaged in the business of Stock Broking, Depository Services, Investment Advisory Services and Portfolio Management Services. Dynamic Equities Pvt. Ltd. is holding company of Dynamic Commodities Pvt. Ltd. , a member of Multi Commodities Exchange (MCX) & National Commodity & Derivatives Exchange Ltd.(NCDEX). We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on for certain operational deviations. Answers to the Best of the knowledge and belief of Dynamic/ its Associates/ Research Analyst who prepared this report
DYANMIC/its Associates/ Research Analyst/ his Relative have any financial interest in the subject company? No
DYANMIC/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company? No
DYANMIC/its Associates/ Research Analyst/ his Relative have any other material conflict of interest at the time of publication of the research report or at the time of public appearance? No
DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation from the subject company in the past twelve months? No
DYANMIC/its Associates/ Research Analyst/ his Relative have managed or co-managed public offering of securities for the subject company in the past twelve months? No
DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months? No
DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months? No
DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation or other benefits from the Subject Company or third party in connection with the research report? No
DYANMIC/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company? No
DYANMIC/its Associates/ Research Analyst/ his Relative have been engaged in market making activity for the subject company? No
General Disclaimer: - This Research Report (hereinafter called “Report”) is meant solely for use by the recipient and is not for circulation. This Report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through Dynamic nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security (ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients of this Report should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. This Report has been prepared on the basis of publicly available information, internally developed data and other sources believed by Dynamic to be reliable. Dynamic or its directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information / opinions / views. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of Dynamic shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including loss profits arising in any way whatsoever from the information / opinions / views contained in this Report. The price and value of the investments referred to in this Report and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance. Dynamic levels do not provide tax advice to its clients, and all investors are strongly advised to consult with their tax advisers regarding taxation aspects of any potential investment. Opinions expressed are our current opinions as of the date appearing on this Research only. We do not undertake to advise you as to any change of our views expressed in this Report. User should keep this risk in mind and not hold dynamic levels, its employees and associates responsible for any losses, damages of any type whatsoever. Dynamic and its associates or employees may; (a) from time to time, have long or short positions in, and buy or sell the investments in/ security of company (ies) mentioned herein and it may not be construed as potential conflict of interest with respect to any recommendation and related information and opinions. Without limiting any of the foregoing, in no event shall Dynamic and its associates or employees or any third party involved in, or related to computing or compiling the information have any liability for any damages of any kind. We and our affiliates/associates, officers, directors, and employees, Research Analyst(including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company (ies) discussed herein or act as advisor to such company (ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of Research Report. Dynamic may have proprietary long/short position in the above mentioned scrip(s) and therefore may be considered as interested. The views provided herein are general in nature and does not consider risk appetite or investment objective of particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Dynamic. Dynamic Equities Pvt. Ltd. are also engaged in Proprietary Trading apart from Client Business.
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