Value Pick September ’18: HIL Limited, Update
Update
Q1 FY 2022-23 Earnings
HIL Ltd – the world’s largest manufacturer and seller of fibre cement roofing have posted its Q1 FY23 numbers today.
Revenue from operations of the company, on a consolidated basis, stood at INR 1084.65 crore for the Q1 ended 30 June 2022 as compared to INR 949.44 crore for the period ended 31 March 2022, registering a growth of 14.24% Q-O-Q basis.
The year-on-year revenue of the company grew by 10.28% (revenue of INR 983.51 crore for the Q1 ended 30 June 2021)
If we look at the segment-wise revenue, the Roofing Solution business is the highest revenue generator for HIL (revenue of INR 452.51 crore for the quarter ended 30 June 2022 v/s INR 241.08 crore for the quarter ended 31 March 2021, and INR 411.99 crore for Q1 FY23), followed by Flooring Solution business (INR 365.34 crore), Polymer Solution business (INR 141.08 crore), and then Building Solution business (INR 124.41 crore).
Total Expenses of the Company –
INR 992.65 Cr as on 30 June 2022,
INR 855.82 Cr as on 30 June 2021,
INR 886.72 Cr as on 31 March 2022
PAT
The Company has generated a net profit of INR 86.73 crore for the period ended 30 June 2022 as compared to INR 50.65 crore, registering a growth of 71.23% Q-O-Q basis. However, the year-on-year revenue of the company de-grew by 15.87% (PAT of INR 99.53 for the Q1 ended 30 June 2021)
EPS of the company stood as follows –
INR 115.43 as on 30 June 2022,
INR 132.84 as on 30 June 2021,
INR 67.41 as on 31 March 2022
Daily Chart –
hil ltd share price is trading at INR 3514 (UP 1.29%) when writing this content with a volume of 44,775 shares on the NSE.
HIL Limited is a value pick stock of Finblab and has given 2.5x returns when compared to ATH of INR 6758 and currently 1.5x returns from the recommended price of INR 2400.
Final Comment: The Company has posted decent numbers and maintains high profitability ratios. The Company is available at a decent valuation (50% discount from its all-time high) and with a good monsoon in the country, the company will do good in the future as well. Finblab has a positive view on the HIL.
Also Read: Nifty has done it again.
06 September 2018
Company Background –
History
Established in 1946, HIL Limited (Hyderabad Industries Limited) is an integral part of the US$1.6 billion C K Birla Group with the distinction of being the market leader in the building material segment in India.
Business
HIL Limited is one of India’s most respected names in the building material solutions industry.
The Company is a pioneer of green building materials, producing roofing solutions, panels, walling blocks, plywood substitutes, high-quality pipes and fittings, and industrial insulation.
HIL “Brands”
HIL has three major brands; Charminar, Birla Aerocon and HYSIL.
- Charminar is the flagship brand from the house of HIL. It is an undisputed leader of Indian roofing and cladding market. It virtually dominates the roofing industry with its exhaustive range of innovative and eco-conscious products. From Asbestos Cement Sheets to Colour Coated Sheets and Eco-friendly Non Asbestos, Fortune – Charminar caters to all categories and for all seasons.
- Birla Aerocon is One Stop Solution for all your Building needs of modern construction. Birla Aerocon green building line comprises of Walling & Plumbing solution. The Solution portfolio primarily includes AAC Blocks & Dry mix Products in Wet Walling, Sandwich cement panels, boards & jointing compound in Dry Walling, CPVC, UPVC, column & SWR pipes & fittings in Plumbing solution.
- HYSIL, a revolutionary brand in green industrial insulation, is a pre-formed, high temperature, abuse-resistant pipe and block insulation with exceptional structural strength. Composed of Hydrous Calcium Silicate (Calsil), it is designed for use on systems operating up to 1100°C. It is inorganic, non-combustible, eco-friendly and meets the physical and thermal property requirements of ASTM – C – 533, BS- 3958 PART II. HYSIL has a good flexural strength and water absorbent characteristics.
HIL “Engineering Division”
Engineering Division of HIL is fully equipped with a full-fledged design office with relevant software, manufacturing facility comprising of heavy duty fabrication shop, machine shop with all modern machines/tools, a complete assembly shop and a quality assurance department. As a result, HIL is today a leading system integrator for special purpose machines in India and Abroad.
Employees & Manufacturing Facilities
HIL Limited employs over 20,000 employees with 24 manufacturing facilities spread across 5 continents of the world.
The Company’s active dealer and retailer network currently stands at 4500+ as and 50 Depots.
Listed On
The shares of HIL Limited are listed for trading on National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) in India.
Stock Information – Meghmani Organics
Share Holding Pattern
HIL Limited – Financials
Conclusion
HIL Limited is one of India’s most respected names in the building material solutions industry. It is a pioneer of green building materials, producing roofing solutions, panels, walling blocks, plywood substitutes, high-quality pipes and fittings, and industrial insulation.
Company is belonging to a well-known group, having sound management, enjoying leadership position and promoters have steady stake (more than 40%) since last 4 quarters. Along with that some of the reputed fund houses like Tatas, Sundaram Opportunities Fund, and even Governor of Andhra Pradesh have stake in the company.
Recently, HIL Limited acquires PARADOR, a leading flooring brand in Europe.
The Company is a sponsor of Chennai Super Kings, one of the cricket team of IPL (Indian premier league)
During the quarter ended June 2018, Net profit of Hil Limited rose 41.14% to INR 52.04 Cr as against INR 36.87 Cr during the previous quarter ended June 2017. Sales rose 22.52% to INR 496.22 Cr in the quarter ended June 2018 as against INR 405.02 Cr during the previous quarter ended June 2017.
Considering the above mentioned factors, the techno-funda analysis, and sector outlook in mind; HIL LIMITED looks good at INR 2400. FinBlab recommends investing in a stock keeping a long-term view in mind. (One can accumulate on decline also)
Also Read –
1) TOP 5 REASONS WHY INDIAN RUPEE IS FALLING AGAINST US DOLLAR
2) TOP 6 REASONS WHY COMPANIES GO FOR A SHARE BUYBACK
Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.
