Value Pick September ’18: HIL Limited
Company Background –
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.
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 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.
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
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)
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