HeidelbergCement - 3QFY17 Result Update - A Quiet Quarter; Expect Improvement Ahead - Reliance Securities

With no meaningful capacity addition coming in central region in the next 2-3 years, we believe HCIL would hit a sweet spot to improve its financials in ensuing years on the back of healthy demand outlook (owing to possible up-tick in government spending in UP & MP) and likely improvement in pricing environment. Further, visible de-leveraging of balance-sheet and healthy operating efficiencies are expected to result in improvement in return ratios. We reiterate our BUY recommendation on the stock with a downwardly revised Target Price of Rs140 (8x FY19E EBITDA).

Shares of HEIDELBERGCEMENT INDIA LTD. was last trading in BSE at Rs.110.95 as compared to the previous close of Rs. 110.35. The total number of shares traded during the day was 48569 in over 519 trades.

The stock hit an intraday high of Rs. 113 and intraday low of 110.5. The net turnover during the day was Rs. 5397497.

Source : Equity Bulls

Keywords