HeidelbergCement India Analysis

dividend

Pros

• Dividends paid are covered by earnings (1.6x coverage).
• HeidelbergCement India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• HeidelbergCement India's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividend payments have increased, but HeidelbergCement India only paid a dividend in the past 3 years.
• Whilst dividend payments have been stable, HeidelbergCement India has been paying a dividend for less than 10 years.

health

Pros

• HeidelbergCement India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• HeidelbergCement India is profitable, therefore cash runway is not a concern.
• HeidelbergCement India is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (163.8%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 3.7x debt.
• HeidelbergCement India's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (149% vs 21.3% today).
• Interest payments on debt are well covered by earnings (EBIT is 5.7x coverage).
• HeidelbergCement India's level of debt (21.3%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the HeidelbergCement India board of directors is about average.
• Jamshed's remuneration is lower than average for companies of similar size in India.
• The average tenure for the HeidelbergCement India management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

misc

Pros

Cons

• HeidelbergCement India is not covered by any analysts.

past

Pros

• HeidelbergCement India has delivered over 20% year on year earnings growth in the past 5 years.
• HeidelbergCement India used its assets more efficiently than the IN Basic Materials industry average last year based on Return on Assets.
• HeidelbergCement India has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• HeidelbergCement India has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• HeidelbergCement India's earnings growth has exceeded the IN Basic Materials industry average in the past year (21.3% vs 17%).

Cons

• HeidelbergCement India's 1-year earnings growth is less than its 5-year average (21.3% vs 47.8%)

value

Pros

• HeidelbergCement India's share price is below the future cash flow value, and at a moderate discount (> 20%).
• HEIDELBERG outperformed the Basic Materials industry which returned -15.5% over the past year.
• HEIDELBERG matched the India Market (-14.5%) over the past year.
• NSEI:HEIDELBERG is up 9.1% along with the Basic Materials industry (9.2%) over the past month.
• NSEI:HEIDELBERG is up 9.1% outperforming the market in India which returned 8% over the past month.

Cons

• HeidelbergCement India's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• HeidelbergCement India is overvalued based on assets compared to the IN Basic Materials industry average.
• HeidelbergCement India is overvalued based on earnings compared to the IN Basic Materials industry average.
• HeidelbergCement India is overvalued based on earnings compared to the India market.