02.09.2019
AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT:
HEIDELBERG CEMENT INDIA LTD
CMP195
ENTER LEVEL – 180 TO 185 STOP LOSS 150 TARGET 300-350 IN 12-18 MONTHS
One of the world's largest integrated manufacturers of
building materials, Heidelberg Cement Group made its foray into India in early
2006. The move was motivated by its pursuit for growth which emanated from the
opportunities offered by the growing market in developing countries. As a part
of this growth strategy, the Group acquired controlling stake in Mysore Cements
Limited as well as the Indorama Cement Limited Joint Venture, which in 2008 was
converted into a complete acquisition. After the merger of Indorama Cement with
Mysore Cements, in 2009, Mysore Cements was renamed HeidelbergCement India Ltd.
Since then there has been no looking back. In 2009, the Company undertook a
brownfield capacity expansion in Central India to increase its cement
manufacturing capacity from 2.1 million tonnes per annum to 5.4 million tonnes
per annum.The Company operates three plants located at Damoh (MP), Jhansi (UP)
and Ammasandra (Karnataka) It has an equity base of Rs.226.62crore that is
supported by reserves of around Rs.944.57crore.The Promoters hold 69.39%, FIIs
hold 11.68%, Mutual Funds hold 3.75% while the investing public holds 11.70%
stake in the company.During Q1FY20, HCL posted 54.60% higher PAT of
Rs.79.03crore on 8.49% higher sales of Rs.582.44crore fetching an EPS of
Rs.3.49. At CMP stock is trading at PE ratio of 18x. It has paid 30% dividend
for FY19.
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