Reviews

HEIDELBERG CEMENT INDIA 

Ticker : 500292
FV: Rs 10
52-Week H/L: Rs 189.25/122.10

We had recommended Heidelberg Cement India in volume no 34, issue no 47 (dated Sept 10, 2018) when the scrip was trading at Rs 163. Our recommendation was backed by factors like robust growth and uptick in demand. In Q2FY19, the company’s revenue was up by 14.1 percent YoY from Rs 426 crore to Rs 486 crore. EBITDA grew by 25.8 percent YoY and margin improved from 22 percent to 24 percent. PAT for the quarter jumped by 51.5 percent YoY to Rs 50 crore from Rs 33 crore. The demand in eastern and central regions of India, where the company has a major presence, is expected to remain stable. By FY21, the whole cement industry would expand its capacity by 60-65 MT. Considering these factors, we urge investors to HOLD the scrip. 

BALKRISHNA INDUSTRIES 

Ticker: 502355
FV: Rs 2
52-Week H/L: Rs 1,467.40/ 853.45

We had recommended Balkrishna Industries in volume no 35, issue no 3 (dated Nov 5, 2018) when the scrip was trading at Rs 1130.45. In Q2FY19, the revenue was up 18.9 percent YoY from Rs 1114 crore to Rs 1325 crore. EBITDA rose by 9.2 percent YoY, but EBITDA margin declined from 27 percent to 25 percent due to rise in crude oil prices. PAT for the quarter increased by 9.4 percent YoY from Rs 203 crore to Rs 222 crore. On QoQ basis, the company’s profitability declined due to higher crude oil prices. However, post-October, a sharp fall in crude prices was witnessed which is a positive sign for the rubber and tyre companies. We expect recovery in the company’s performance from Q3FY19 onwards and hence urge investors to HOLD the scrip.