HeidelbergCement India Limited

Basic Materials — Building Materials · NSE

₹125.20+₹0.22 (+0.18%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of HeidelbergCement India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

HeidelbergCement India Limited manufactures and sells cement in India. The company offers Portland pozzolana cement under the mycem, mycem Primo, mycem Power, and mycem Power Shield brand names. It also manufactures and sells clinkers; and sells scrap products.

IndustryBuilding Materials

SectorBasic Materials

Employees958

Annual revenue₹2,315 Cr

How does it make money?

Turns over ₹2,315 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 958 employees supports ₹2.42 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.42 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE7.4%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 4.9% and earnings to grow about 19.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+4.9%

Est. earnings growth+19.9%

Analysts7

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +5% while net margin moved +29% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+5%

Margin effect+29%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.8% is weak

Quality vs. Valuation

Company Quality

53/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

71/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

24.4x

3Y Median

33.7x

40 monthly readings · mean 35.8x · range 21.2x–53.6x

Sector Median

36.2x

median of 4 sector peers

🟢Current valuation is approximately 28% below its 3y median of 33.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 33% below the peer median of 36.2x.

vs. its own history

Cheap

33.7x median over 40 months · -28%

vs. sector peers

Cheap

36.2x median of 4 peers · -33%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.6x

PEG

2.31

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 92% over 3 years.
Return on capital is rising
ROCE has improved from 9.9% to 12.7%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 92% against revenue up 5% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 92% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 28% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 33% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 92% against revenue up 5%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 1.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 12%✓ 13.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.6% CAGR
Latest reported year was 5.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹146 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹2,837 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.4x

Fair

Fairly valued against the generic band

P/B Ratio

2.06x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.14

Profitable

Profitable on a per-share basis

ROE

9.8%

Moderate

Moderate capital efficiency

ROCE

12.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.04x

Moderate

Moderate leverage

Revenue Growth (YoY)

5.1%

Modest

Modest growth

Profit Growth (YoY)

-36.6%

Falling

Profits are shrinking

Dividend Yield

5.59%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹146 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

15.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.0%

Average

Average margins

Net Margin

4.9%

Average

Average bottom-line conversion

Current Ratio

1.10

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

131.6 / 146.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,209 Cr	₹2,358 Cr	₹2,139 Cr	₹2,315 Cr	+1.6%
EBITDA	₹292 Cr	₹371 Cr	₹285 Cr	₹322 Cr	+3.4%
EBITDA Margin	13.2%	15.7%	13.3%	13.9%	—
PAT (Net Profit)	₹99 Cr	₹168 Cr	₹107 Cr	₹134 Cr	+10.5%
EPS	₹4.38	₹7.4	₹4.71	₹5.91	+10.5%
ROE	6.8%	11.4%	7.7%	9.8%	—
ROCE	9.9%	14.7%	10.7%	12.7%	—
Total Debt	₹182 Cr	₹137 Cr	₹75 Cr	₹14 Cr	-57.2%
Free Cash Flow	₹199 Cr	₹276 Cr	₹155 Cr	₹146 Cr	-9.8%

🟡 Revenue has been broadly flat over 3 years (1.6% a year).

🟢 EBITDA has grown at 3.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 13.9% over 3 years.

🟢 PAT (Net Profit) has grown at 10.5% a year over 3 years.

🟢 EPS has grown at 10.5% a year over 3 years.

🟢 ROE has risen from 6.8% to 9.8% over 3 years (+3.0 pts).

🟢 ROCE has risen from 9.9% to 12.7% over 3 years (+2.8 pts).

🟢 Total Debt has shrunk at 57.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 9.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,438 Cr

Total Liabilities

₹1,066 Cr

Cash & Equivalents

₹67 Cr

Operating Cash Flow

₹198 Cr

Capex

-₹52 Cr

Shareholding (proxy)

Institutional Holding

14.4%

Insider Holding

71.2%

Corporate Actions

Dividend Rate

₹7

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 4 Hold · 4 Sell

Target Price (Mean)

₹166.44

+32.9% vs CMP

Target Range

₹135 – ₹252

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

3 mixed3 general

HeidelbergCement India (NSEI:HEIDELBERG) Stock Forecast & Analyst Predictions

Simply Wall Street, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Heidelberg Cement India 52 Week Low Streak: Latest Read

Univest, 14 Oct

HEIDELBERG Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

HeidelbergCement India Q1 Net Profit Dips To ₹30.6 Crore Versus ₹48.2 Crore YoY

Sahi, 29 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

HeidelbergCement FY26 PAT rises 25.5% to ₹1,340 million

scanx.trade, 19 May

Tech Query: Hyundai Motor India, HeidelbergCement India, Bank of India, V-Guard Industries – What is the outlook? Where are these stocks headed?

BusinessLine, 25 Jul

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Risk

WeakProfitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑