Mehabe score: 8 G Factor: 7 Piotski Score: 7 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 7 and Piotski score of 7.
Description
HIL Limited (HIL) is a part of the C.K. Birla Group and is headquartered in Hyderabad. It is one of the leading Companies in the building materials and construction industry with robust product pipeline and wide range. The company manufactures asbestos FC sheets, coloured steel sheets, non-asbestos corrugated roofing sheets, new generation building products like autoclaved aerated concrete (AAC) blocks (light bricks) that are used for walls in building constructions and aerocon panels and boards that are used as partition in residential and commercial buildings.
Main Points
Wide Distribution Network
The company has a network of 2,500 distributors and its dealership network consists of 6,500 sub-dealers which is supported by 40 depots & 7 sales offices across the country. Due to its aqcuisition of Parador of Germany, the company has a presence in 80+ countries. #Site:HILMain Symbol:HIL
Stock trades at 4635.0, above its 50dma 4242.94. It also trades above its 200dma 3064.03. The stock remains bullish on techicals
The 52 week high is at 5170.00 and the 52week low is at 1128.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 43.80% CAGR over last 5 years
Weakness
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 11.6x. BIGBLOC Const. trades at the industry’s max P/E of 57.75x. HIL trades at a P/E of 13.4x
– Industry’s mean G-Factor is 6.0 while the mean Piotski score is 8.0. HIL has a G-Factor of 7 and Piotski scoreof 7.
– Average 1 month return for industry is 0.6%. The max 1- month return was given by BIGBLOC Const.: a return of 10.65 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 844.0 cr compared to Rs 645.0 cr for period ended Mar 2020, a rise of 30.9%
Operating Profits reported at Rs 112.0 cr for period ended Mar 2021 vis-vis 56.0 for period ended Mar 2020 .
Operating Margins expanded 458.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 83.55 compared to Rs 70.11 for previous quarter ended Dec 2020 and Rs 31.77 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3044.0 cr for period ended Mar 2021 vis-vis sales of Rs 2555.0 cr for the period ended Mar 2020, a healthy growth of 16.1%. The 3 year sales cagr stood at 33.5%.
Operating margins expanded to 13.0% for period ended Mar 2021 vis-vis 9.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 260.0 cr for period ended Mar 2021 vis-vis sales of Rs 106.0 cr for the period ended Mar 2020, rising 59.2%.
Company recorded a healthy Net Profit CAGR of 47.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 466.0 cr for period ended Mar 2021 vis-vis Rs 130.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 30.0% compared to 22.0% over the last 3 Years. – The stock has given a return of 291% on a 1 Year basis vis-vis a return of 36% over the last 3 Years. – The compounded sales growth on a TTM bassis is 19% vis-vis a compounded sales growth of 33% over the last 3 Years. – The compounded profit growth on a TTM basis is 154% vis-vis a compounded profit growth of 51% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 2.31% vis-vis 1.55% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 47.46% vis-vis 47.15% for Dec 2020
Conclusion
– has reduced debt.
– has delivered good profit growth of 43.80% CAGR over last 5 years – might be capitalizing the interest cost
