HDFC Securities has given Buy recommendation for Heidelberg Cement with a target price of Rs. 266 in its research report issued on Feb 12, 2021

HDFC Securities’ research report on Heidelberg Cement

Heidelberg Cement’s (HEIM) 3QFY21 revenue grew by 9% YoY to INR 5.95bn led by both higher sales volume and realisation. However, EBITDA came in flat YoY at INR 1.20bn as input cost inflated (due to OLBC maintenance work at Damoh). Further, the higher tax outgo led to APAT falling 2% YoY to INR 0.64bn. Net cash balance increased to INR 2.2bn in Dec’20 vs net debt of INR 71mn in Mar’20. We continue to like HEIM for its retail presence in the lucrative central market, increased volume growth visibility and a net cash balance sheet.


We maintain BUY with an unchanged target price of INR 266/share (8.5x Dec’22E EBITDA).