Buy Heidelberg Cement, target price Rs 230: ICICI Securities

ICICI Securities has given a buy rating to Heidelberg Cement with a target price of Rs 230. The share price moved up by 0.87 per cent from its previous close of Rs 184.65. The stock’s last traded price is Rs 186.25.

Heidelberg Cement India Ltd., incorporated in the year 1958, is a Mid Cap company (having a market cap of Rs 4209.34 Crore) operating in Cement sector.

Financials
For the quarter ended 30-09-2020, the company reported a Standalone sales of Rs 512.69 Crore, up 26.19 % from last quarter Sales of Rs 406.27 Crore and down -1.31 % from last year same quarter Sales of Rs 519.51 Crore Company reported net profit after tax of Rs 62.40 Crore in latest quarter.

Investment Rationale
The brokerage broadly maintains FY21E-FY23E estimates with an unchanged target price of Rs 230/share based on 7x Sep’22E EV/E.

Promoter/FII Holdings
Promoters held 69.4 per cent stake in the company as of Sept 30, 2020, while FIIs held 9.8 per cent, DIIs 5.7 per cent and public and others 14.1 per cent.