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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500292 | NSE: HEIDELBERG

Heidelberg Cement India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 12:13 pm

Market Cap 5,132 Cr.
Current Price 226
High / Low258/186
Stock P/E39.2
Book Value 59.1
Dividend Yield3.51 %
ROCE16.1 %
ROE11.4 %
Face Value 10.0
PEG Ratio-2.98

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Heidelberg Cement India Ltd

Competitors of Heidelberg Cement India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 73.7 Cr. 22.635.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,09,409 Cr. 10,72812,138/8,54447.1 2,1260.65 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 21,299 Cr. 9021,058/70077.2 3020.28 %8.17 %5.63 % 1.00
The India Cements Ltd 11,000 Cr. 355386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 7,375 Cr. 183256/16237.3 67.90.00 %16.5 %11.5 % 1.00
Industry Average32,643.93 Cr1,751.7334.09526.830.61%11.13%16.10%7.13

All Competitor Stocks of Heidelberg Cement India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales556576545620590506540602596566607597532
Expenses425460476501495458503533503497542508454
Operating Profit13111668119954837699369658978
OPM %24%20%13%19%16%9%7%11%16%12%11%15%15%
Other Income11141212101111131314131412
Interest101110582111799899
Depreciation28282828282829272727272828
Profit before tax10491439869108497048436653
Tax %34%34%28%4%26%28%30%28%25%26%26%27%25%
Net Profit696030945276355236314840
EPS in Rs3.032.631.344.132.280.310.251.542.311.581.392.131.76

Last Updated: September 28, 2024, 5:36 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 28, 2024, 5:36 pm

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales8701,2092,0441,6481,7171,8892,1332,1702,1172,2972,2382,3662,302
Expenses8071,1071,7831,4171,4391,5261,6501,6421,6101,8621,9892,0492,000
Operating Profit63102261231279363483528507435249317302
OPM %7%8%13%14%16%19%23%24%24%19%11%13%13%
Other Income161213522242035534649455553
Interest10106139108907475745136463534
Depreciation248913810099101102109111112112110111
Profit before tax46-8112045114208342398391335136227210
Tax %32%-50%50%22%33%36%35%33%20%25%27%26%
Net Profit31-4160357613322126831525299168155
EPS in Rs1.36-1.802.631.563.365.889.7411.8313.9011.134.387.406.86
Dividend Payout %0%0%0%0%59%43%41%63%58%81%160%108%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-41.67%117.14%75.00%66.17%21.27%17.54%-20.00%-60.71%69.70%
Change in YoY Net Profit Growth (%)0.00%158.81%-42.14%-8.83%-44.90%-3.73%-37.54%-40.71%130.41%

Heidelberg Cement India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2015-2016 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:2%
3 Years:4%
TTM:-5%
Compounded Profit Growth
10 Years:20%
5 Years:-5%
3 Years:-19%
TTM:2%
Stock Price CAGR
10 Years:9%
5 Years:3%
3 Years:-4%
1 Year:15%
Return on Equity
10 Years:13%
5 Years:15%
3 Years:12%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:36 pm

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital227227227227227227227227227227227227227
Reserves6206076456687408209451,0881,2671,3391,2351,2431,113
Borrowings1,0311,3571,2991,039705619517413306199182137143
Other Liabilities5785686506817358671,0081,0651,0451,0601,0221,0541,068
Total Liabilities2,4552,7592,8202,6152,4082,5332,6962,7932,8452,8242,6652,6612,551
Fixed Assets3741,7871,7941,9011,8771,8061,7371,6931,6181,5621,4901,4101,366
CWIP1,51716712756681716192762892
Investments000000000551414
Other Assets5648048996575247199411,0841,2081,2301,1641,2091,078
Total Assets2,4552,7592,8202,6152,4082,5332,6962,7932,8452,8242,6652,6612,551

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +50119238257361377393459439302226350
Cash from Investing Activity +-431-1956-108-40-14-26-14-173-35144-48
Cash from Financing Activity +144117-212-287-315-165-242-314-304-328-267-242
Net Cash Flow-2384132-1386198125131-38-6110460

Free Cash Flow

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow62.00101.00260.00230.00-426.00-256.00-34.00115.00201.00236.0067.00180.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days993634446658
Inventory Days370288168195141125158137157147160139
Days Payable333276168204194223262243265225239245
Cash Conversion Cycle46223-3-50-95-100-101-102-71-75-98
Working Capital Days-52-25-62-77-36-79-62-63-400-27-38
ROCE %2%1%9%7%11%17%25%28%25%21%11%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters69.39%69.39%69.39%69.39%69.39%69.39%69.39%69.39%69.39%69.39%69.39%69.39%
FIIs5.81%5.47%5.45%6.40%5.16%4.81%4.76%4.73%3.91%4.33%4.48%4.42%
DIIs10.94%10.91%10.65%10.04%9.72%10.12%10.32%9.04%8.97%10.01%10.82%10.81%
Government0.14%0.14%0.14%0.14%0.14%0.14%0.14%0.14%0.14%0.14%0.14%0.14%
Public13.72%14.09%14.36%14.03%15.59%15.53%15.38%16.70%17.58%16.12%15.16%15.25%
No. of Shareholders96,9581,01,5861,03,0761,00,8271,02,6391,02,5801,02,7211,02,9991,02,65091,10189,34589,805

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis Small Cap Fund5,040,6900.49116.451,286,9612024-11-12291.67%
ICICI Prudential Smallcap Fund2,499,6220.6657.741,286,9612024-11-1294.23%
SBI Long Term Equity Fund1,844,4890.1542.611,286,9612024-11-1243.32%
ICICI Prudential Dividend Yield Equity Fund1,727,5060.8239.911,286,9612024-11-1234.23%
SBI Multi Asset Allocation Fund1,300,0000.530.111,286,9612024-11-121.01%
ICICI Prudential Infrastructure Fund1,286,9610.4829.731,286,9612024-11-120%
ICICI Prudential Multi Asset Fund1,216,7050.0628.111,286,9612024-11-12-5.46%
Aditya Birla Sun Life MNC Fund - Div1,129,0900.6426.081,286,9612024-11-12-12.27%
Aditya Birla Sun Life MNC Fund - Gr1,129,0900.6426.081,286,9612024-11-12-12.27%
ICICI Prudential Manufacturing Fund106,7640.042.471,286,9612024-11-12-91.7%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)7.404.3811.1313.9011.83
Diluted EPS (Rs.)7.404.3811.1313.9011.83
Cash EPS (Rs.)12.249.3316.0718.8016.62
Book Value[Excl.RevalReserv]/Share (Rs.)64.8664.4969.0765.9258.01
Book Value[Incl.RevalReserv]/Share (Rs.)64.8664.4969.0765.9258.01
Dividend / Share (Rs.)8.007.009.008.007.50
Revenue From Operations / Share (Rs.)104.3998.76101.3693.4095.74
PBDIT / Share (Rs.)16.3812.9821.3424.4125.62
PBIT / Share (Rs.)11.548.0216.4019.5120.82
PBT / Share (Rs.)10.015.9914.7917.2617.57
Net Profit / Share (Rs.)7.404.3811.1313.9011.83
PBDIT Margin (%)15.6913.1421.0526.1326.75
PBIT Margin (%)11.058.1216.1720.8821.75
PBT Margin (%)9.586.0614.5918.4818.34
Net Profit Margin (%)7.094.4310.9814.8712.35
Return on Networth / Equity (%)11.416.7816.1121.0820.39
Return on Capital Employeed (%)14.8910.0218.6922.9325.31
Return On Assets (%)6.303.728.9311.069.59
Long Term Debt / Equity (X)0.030.070.100.110.21
Total Debt / Equity (X)0.080.110.120.190.21
Asset Turnover Ratio (%)0.880.810.810.750.79
Current Ratio (X)1.261.311.421.091.10
Quick Ratio (X)1.071.101.210.910.94
Inventory Turnover Ratio (X)2.472.372.702.412.45
Dividend Payout Ratio (NP) (%)94.56205.6571.8643.1738.04
Dividend Payout Ratio (CP) (%)57.1896.4349.7631.9127.07
Earning Retention Ratio (%)5.44-105.6528.1456.8361.96
Cash Earning Retention Ratio (%)42.823.5750.2468.0972.93
Interest Coverage Ratio (X)10.686.3913.2710.887.86
Interest Coverage Ratio (Post Tax) (X)5.833.157.927.194.63
Enterprise Value (Cr.)4015.473322.474101.415144.223029.71
EV / Net Operating Revenue (X)1.701.481.792.431.40
EV / EBITDA (X)10.8211.308.489.305.22
MarketCap / Net Operating Revenue (X)1.881.631.872.501.48
Retention Ratios (%)5.43-105.6528.1356.8261.95
Price / BV (X)3.022.492.743.542.45
Price / Net Operating Revenue (X)1.881.631.872.501.48
EarningsYield0.030.020.050.050.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Heidelberg Cement India Ltd as of November 14, 2024 is: 273.38

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 14, 2024, Heidelberg Cement India Ltd is Undervalued by 20.96% compared to the current share price 226.00

Intrinsic Value of Heidelberg Cement India Ltd as of November 14, 2024 is: 237.37

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 14, 2024, Heidelberg Cement India Ltd is Undervalued by 5.03% compared to the current share price 226.00

Last 5 Year EPS CAGR: -13.17%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -46.75, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -52.00, which is a positive sign.
  3. The company has higher reserves (948.46 cr) compared to borrowings (611.31 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (68.46 cr) and profit (191.62 cr) over the years.
  1. The stock has a low average ROCE of 14.42%, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Heidelberg Cement India Ltd:
    1. Net Profit Margin: 7.09%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.89% (Industry Average ROCE: 11.13%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 11.41% (Industry Average ROE: 16.1%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 5.83
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.07
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 39.2 (Industry average Stock P/E: 34.09)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.08
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Heidelberg Cement India Ltd. is a Public Limited Listed company incorporated on 13/05/1958 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L26942HR1958FLC042301 and registration number is 042301. Currently Company is involved in the business activities of Manufacture of clinkers and cement. Company’s Total Operating Revenue is Rs. 2296.96 Cr. and Equity Capital is Rs. 226.62 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cement2 Floor, Block - B, DLF Cyber Greens, Gurgaon Haryana 122002investors.mcl@mycem.in
http://www.mycemco.com
Management
NamePosition Held
Ms. Jyoti NarangChairperson & Independent Director
Mr. Joydeep MukherjeeManaging Director
Mr. Vimal Kumar JainWhole Time Director
Ms. Soek Peng SimNon Executive Director
Mr. Roberto CallieriNon Executive Director
Mr. Atul KhoslaIndependent Director

FAQ

What is the latest intrinsic value of Heidelberg Cement India Ltd?

The latest intrinsic value of Heidelberg Cement India Ltd as on 14 November 2024 is ₹273.38, which is 20.96% higher than the current market price of ₹226.00.

What is the Market Cap of Heidelberg Cement India Ltd?

The Market Cap of Heidelberg Cement India Ltd is 5,132 Cr..

What is the current Stock Price of Heidelberg Cement India Ltd as on 14 November 2024?

The current stock price of Heidelberg Cement India Ltd as on 14 November 2024 is ₹226.

What is the High / Low of Heidelberg Cement India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Heidelberg Cement India Ltd stocks is 258/186.

What is the Stock P/E of Heidelberg Cement India Ltd?

The Stock P/E of Heidelberg Cement India Ltd is 39.2.

What is the Book Value of Heidelberg Cement India Ltd?

The Book Value of Heidelberg Cement India Ltd is 59.1.

What is the Dividend Yield of Heidelberg Cement India Ltd?

The Dividend Yield of Heidelberg Cement India Ltd is 3.51 %.

What is the ROCE of Heidelberg Cement India Ltd?

The ROCE of Heidelberg Cement India Ltd is 16.1 %.

What is the ROE of Heidelberg Cement India Ltd?

The ROE of Heidelberg Cement India Ltd is 11.4 %.

What is the Face Value of Heidelberg Cement India Ltd?

The Face Value of Heidelberg Cement India Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Heidelberg Cement India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE