Stock Research Report - Hyderabad Industries

Hyderabad Industries is a C K Birla Group company. It is into the business of producing building products, engineering goods and industrial products and is a market leader in its segments.

HIL markets its product AC and fibre cement sheets under the well-known brand “Charminar”. The total capacity of the cement sheet is 8.55 lakh tpa, prefab building panels at 4.60 lakh tpa, prefabricated autoclaved capacity at 3.05 lakh tpa and thermal insulation capacity is 6,000 tpa.

The commercial production of sheeting line 2 in Uttar Pradesh has started w.e.f. 09 February 2012. HIL is also the largest manufacturer of calcium silicate, insulation blocks, pipe sections and jointing for gasketing, thereby meeting the critical needs of the fertilizer, engineering & chemical industries. Company also makes aerocon prefab panels, autoclaved aerated concrete blocks, which find applications in the construction of buildings, malls, shopping complexes and office partitioning etc.

HIL has a strong & extensive distribution network with nearly 8000 sales points spread across the country which is serviced by its 45 depots across country.

The stock trades at current stock price of Rs.358 at P/E of 4.4 FY12. With expected EPS of 93.5 in FY13E, stock trades at P/E of 3.83 and at P/E of 3.25 with 110 EPS FY14E. With these estimates, stock price target will be Rs. 480 in medium term.

At current stock price of Rs. 358, dividend yield is also very attractive at 4.47%. It's book value is 474 making it a stock available below book value and a good dividend yielding value stock to buy.

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