Heidelberg Cement
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
HeidelbergCement India Limited's management has expressed cautious optimism regarding future growth, particularly in Central India, driven by upcoming elections and a reduction in GST on cement. These factors are expected to enhance demand and consumption in the short to medium term. However, the company faces significant risks from geopolitical tensions, inflation, and currency depreciation, which could impact input costs and pricing strategies. Vista's financial outlook reflects stable revenue growth consistent with historical performance, alongside improving margins as the company effectively passes on cost increases to customers. The balance sheet remains conservatively financed, supporting financial stability. The cement industry is experiencing favorable conditions, with improving pricing power and a forecasted margin increase, which aligns with Vista's expectations of a modest upside. Over the next 12-24 months, key opportunities include leveraging favorable policy changes and infrastructure development, while watchpoints include geopolitical risks and inflationary pressures that could challenge margins and growth prospects
Why We Like This Stock
- Upcoming elections in Central India are expected to boost cement demand
- Reduction in GST on cement from 28% to 18% is anticipated to increase consumption
- Management's focus on sustainability and cost management supports margin improvement
Things To Watch Out For
- Geopolitical tensions may create uncertainty in global markets and commodity prices
- Elevated inflation and currency depreciation could impact input costs and pricing strategies
- Competitive pressures may continue to challenge margins and market perception
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,366 | 2,149 | 2,330 | 2,451 | 2,601 |
| Profit Before Tax (Cr.) | 227 | 146 | 192 | 139 | 172 |
| PBT Margin | 9.6% | 6.8% | 824.2% | 5.7% | 6.6% |
| Net Profit (Cr.) | 160 | 99 | 130 | 95 | 117 |
| Earnings Per Share | 7.1 | 4.4 | 5.7 | 4.2 | 5.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| HDFC Securities | ▼ Reduce | 140 | 30-Jul-2026 |
Company Overview
Show Company Profile
HeidelbergCement India Limited manufactures and sells cement in India and internationally. The company offers Portland pozzolana cement under the mycem, mycem Primo, mycem Power, and mycem Power Shield brands. It also manufactures and sells clinkers; and sells scrap materials. In addition, the company provides concrete solution labs, including mobile technical lab services. The company was formerly known as Mysore Cements Limited and changed its name to HeidelbergCement India Limited in April 2009. The company was incorporated in 1958 and is based in Gurugram, India. HeidelbergCement India Limited is a subsidiary of Heidelberg Materials South Asia B.V.