Check Before You Invest : Heidelberg Cement India Ltd

Snapshot

Q.1 Which industry/sub-sector does Heidelberg Cement India Ltd belong to?

Heidelberg Cement India Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q.2 Is Heidelberg Cement India Ltd a good quality company?

Heidelberg Cement India Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Heidelberg Cement India Ltd undervalued or overvalued?

Heidelberg Cement India Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Heidelberg Cement India Ltd a good buy now?

Heidelberg Cement India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Heidelberg Cement India Ltd?

Heidelberg Cement India Ltd revenue growth is -9.2% for FY-2025, which is below its 5-year CAGR of -0.19%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Heidelberg Cement India Ltd?

Heidelberg Cement India Ltd Return on capital employed is 11.46% for FY-2025, which is below its 5-year historical median of 16.2%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Heidelberg Cement India Ltd?

Heidelberg Cement India Ltd Return on Asset is 4.1%, which is below its 5-year historical median of 6.3%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Heidelberg Cement India Ltd?

Heidelberg Cement India Ltd Return on equity is 7.45% for FY-2025, which is below its 5-year historical median of 11.45%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Heidelberg Cement India Ltd?

Heidelberg Cement India Ltd Cash conversion cycle is -18 days, in line with its 5-year historical median of -18 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.83	0.82
ROE	7.45	11.45
ROCE	11.46	16.2
Cash Conversion Cycle	-18 days	-18 days

Q.6 Gross Profit margin of Heidelberg Cement India Ltd?

Heidelberg Cement India Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025, which is below its 5-year median of 14.2%, indicating decreasing margins.

Q.7 Operating Profit Margin of Heidelberg Cement India Ltd?

Heidelberg Cement India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.17% for FY-2025, which is below its 5-year median of 13.41% indicating decreasing margins.

Q.8 Net Profit Margin of Heidelberg Cement India Ltd?

Heidelberg Cement India Ltd Net Profit Margin is 4.97% for FY-2025, is below with its 5-year median of 7.09%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	11.9	14.2
Operating Profit Margin	11.17	13.41
Net Profit Margin	4.97	7.09

Q.9 Debt to Equity ratio of Heidelberg Cement India Ltd?

Heidelberg Cement India Ltd Debt-to-Equity ratio is 0.05, which is lower with the industry average of 0.39, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Heidelberg Cement India Ltd?

Heidelberg Cement India Ltd Debt to cash flow from operations is 0.25, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Heidelberg Cement India Ltd?

Promoters hold 69.39% of the Heidelberg Cement India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Heidelberg Cement India Ltd vs industry peers?

Heidelberg Cement India Ltd revenue CAGR is -0.19%, compared to the industry median CAGR of 6.22%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-9.2	6.2
Gross Profit Growth	-23.8	NAN
Operating Profit Growth	-24.6	-3.8
Net Profit Growth	-36.3	-9.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.83	0.82
ROE	7.45	7.62
ROCE	11.46	9.4
Cash Conversion Cycle (days)	-17.68	23

Valuation & price assessment

Q.1 Stock return of Heidelberg Cement India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 5.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	5.1%	-8.1%	-2.4%	-17.8%

Q.3 Valuation ratios of Heidelberg Cement India Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	25.75	29.02	22.85
Price to Book	2.71	3.19	1.92
Price to Sales	1.56	2.03	1.40
EV to EBITDA	10.03	11.70	11.62

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