Heidelbergcement India Limited. (HEIDELBERG) AI Stock Analysis

• Market Cap: ₹33.87B
• Dividend Yield: 4%
• Average Volume (3M): 9.69K
• Price to Earnings (P/E): 63.5
• Beta (1Y): 1.02
• Revenue Growth: 3.06%
• EPS Growth: -1.48%
• Country: IN
• Employees: 1,017
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.80
• Shares Outstanding: 226,613,110
• 10 Day Avg. Volume: 5,272
• 30 Day Avg. Volume: 9,688
• PEG Ratio: -1.16
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 25.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 6.7
• Revenue Forecast (FY): ₹23.17B

• Rating: 57 Neutral
• Price Target: ₹155.00 ▼(-11.78% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

The overall stock score of 57 reflects a mixed financial performance with strong balance sheet but declining income and cash flow metrics. Technical analysis indicates a neutral to slightly bearish trend, while valuation suggests potential overvaluation despite a decent dividend yield.

Positive Factors

Balance sheet strength

Conservative leverage and a robust equity ratio provide lasting financial flexibility. This reduces refinancing risk during cyclic slowdowns, supports capital expenditure for capacity or efficiency projects, and preserves the ability to fund operations or dividends without stressing liquidity over months.

Cash generation efficiency

Consistent operating cash conversion underpins durable cash generation to cover working capital, maintenance capex and routine distributions. Over 2-6 months this supports operational resilience and reduces dependence on external funding for routine needs or small expansions.

Parent affiliation & distribution network

Being part of a global materials group gives access to procurement scale, technical know-how and potential capital support. Combined with multi-channel distribution (trade and institutional), this provides durable market reach, brand presence and supply advantages versus smaller regional peers.

Negative Factors

Margin pressure

Volatile and declining margins point to structural cost pressures (fuel, power, logistics) and weak pricing power that can persist. Over months this erodes cash available for reinvestment, weakens returns on capital, and increases sensitivity to input-cost swings in the sector.

Declining free cash flow

Falling free cash flow constrains the company's ability to fund growth capex, pay down debt, or sustain higher shareholder distributions. Persistently weaker FCF reduces strategic optionality and may force reliance on external financing for larger investments, increasing long-term cost of capital.

Weak revenue momentum

Negative recent revenue growth signals structural demand headwinds or market-share pressure. Over a multi-month horizon this depresses capacity utilization and fixed-cost absorption, making margin recovery harder and limiting sustainable earnings growth without market-share gains or pricing improvement.

Heidelbergcement India Limited. Business Overview & Revenue Model

Company Description

HeidelbergCement India Limited manufactures and sells cement in India. The company offers Portland pozzolana cement and Portland slag cement under the mycem, mycem Primo, and mycem Power brand. It also provides concrete solution lab and mobile technical lab services. The company was formerly known as Mysore Cements Limited and changed its name to HeidelbergCement India Limited in April 2009. The company was incorporated in 1958 and is based in Gurugram, India. HeidelbergCement India Limited is a subsidiary of Cementrum I.B.V.

How the Company Makes Money

HeidelbergCement India Limited primarily makes money by manufacturing and selling cement. Its core revenue stream is domestic sales of cement to (1) trade channels such as dealers and retailers who supply individual home builders and small contractors, and (2) non-trade/institutional customers such as construction companies and infrastructure project contractors who purchase in bulk. Revenue is typically driven by sales volume (tonnes sold) and realization per tonne (net selling price after discounts), which varies by region, product mix, and demand conditions. The company also earns revenue from sales of different cement grades and blended products, where product mix can affect average realizations and margins. Key factors influencing earnings include input and operating costs (notably power and fuel used in clinker and cement production, and logistics/freight to move cement to market), capacity utilization, regional demand cycles in construction, and pricing discipline in the local cement markets where it operates. Information on any significant partnerships or non-cement revenue streams is null.

Heidelbergcement India Limited. Financial Statement Overview

Summary

Heidelbergcement India Limited exhibits a mixed financial profile. The balance sheet is strong with conservative leverage, but the income statement shows declining margins and negative revenue growth. Cash flows are stable, though declining free cash generation could impact future growth.

Income Statement

The income statement reveals mixed performance with fluctuating revenue and declining profitability metrics. The Gross Profit Margin and Net Profit Margin have shown some volatility, indicating inconsistent cost management. Revenue growth has been negative in recent years, suggesting challenges in maintaining revenue momentum. EBIT and EBITDA margins have also been decreasing, pointing to operational inefficiencies.

Balance Sheet

The balance sheet is relatively strong with a low Debt-to-Equity Ratio, indicating conservative leverage. The Equity Ratio is robust, reflecting financial stability and strong asset backing. However, the Return on Equity has been under pressure due to declining net income, affecting the overall attractiveness of equity returns.

Cash Flow

Cash flow analysis shows a stable operating cash flow, but declining Free Cash Flow over recent periods. The Operating Cash Flow to Net Income ratio is healthy, indicating good cash conversion efficiency. However, Free Cash Flow to Net Income ratio has been declining, hinting at potential pressures on free cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.64B	21.49B	23.66B	22.38B	22.97B	21.17B
Gross Profit	13.62B	8.81B	7.43B	5.99B	7.59B	8.10B
EBITDA	3.09B	2.85B	3.71B	2.94B	4.84B	5.53B
Net Income	1.29B	1.07B	1.68B	991.70M	2.52B	3.15B
Balance Sheet
Total Assets	24.37B	25.42B	26.61B	26.65B	28.24B	28.45B
Cash, Cash Equivalents and Short-Term Investments	3.90B	4.63B	5.68B	5.84B	4.98B	4.30B
Total Debt	835.50M	754.10M	1.37B	1.82B	1.99B	3.06B
Total Liabilities	11.28B	11.47B	11.91B	12.03B	12.59B	13.52B
Stockholders Equity	13.10B	13.95B	14.70B	14.61B	15.65B	14.94B
Cash Flow
Free Cash Flow	620.60M	1.74B	2.76B	1.99B	2.55B	3.91B
Operating Cash Flow	838.00M	2.84B	3.50B	2.26B	3.02B	4.39B
Investing Cash Flow	116.40M	-1.09B	-479.10M	1.44B	-350.00M	-1.73B
Financing Cash Flow	-1.68B	-2.54B	-2.42B	-2.67B	-3.28B	-3.04B

Heidelbergcement India Limited. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 175.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HEIDELBERG, the sentiment is Negative. The current price of 175.7 is above the 20-day moving average (MA) of 160.89, above the 50-day MA of 166.61, and below the 200-day MA of 188.49, indicating a bearish trend. The MACD of -4.10 indicates Positive momentum. The RSI at 33.04 is Neutral, neither overbought nor oversold. The STOCH value of 34.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HEIDELBERG.

Heidelbergcement India Limited. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ORIENTCEM	60 Neutral	₹27.50B	31.64	―	0.29%	3.43%	100.99%
MANGLMCEM	59 Neutral	₹21.79B	46.52	―	0.19%	10.61%	43.88%
STARCEMENT	58 Neutral	₹83.54B	30.41	―	0.45%	18.13%	52.87%
HEIDELBERG	57 Neutral	₹33.87B	63.47	―	4.00%	3.06%	-1.48%
SAGCEM	48 Neutral	₹22.43B	-12.17	―	0.33%	3.34%	-112.79%
SANGHIIND	44 Neutral	₹13.28B	-3.63	―	―	32.54%	19.65%