hyderabad Industries
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=419
Printed Date: 20/Apr/2025 at 5:29pm
Topic: hyderabad Industries
Posted By: vijinat
Subject: hyderabad Industries
Date Posted: 26/Sep/2006 at 10:28pm
| For quite sometime I have been watching this scrip. It is essentially in one of the most active sectors,viz., construction and to be precise, its manufacturing cement products. The capital is about 7.5 crores and the book value of the share now is about Rs.170/-. Its EPS for the full last year was Rs.52/- and the latest quarter EPS was Rs.13/- A consistent performer. While the others like Indian Hume Pipe and Sanghi are at a much lower EPS, their PEs are at 13 and 12 as against HYd Inds' PE of 6 only. Recently the company took over Malabaroducts to synergise the activities. Its quoting lessthan 50% of its year high. Will someone be able to tell what is the problem with this scrip? |
Replies:
Posted By: India_Bull
Date Posted: 06/Nov/2006 at 9:37pm
|
I have lost patience and sold it off today ... ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: basant
Date Posted: 06/Nov/2006 at 10:08pm
|
I think that the management is a suspect - CK Birla if I am not mistaken these management create market cap in bull markets only. Other companies under the same management is Orient paper and hindustan Motors.
A very close friend of mine and a frequent visitor to this website does a lot of contract work for orient paper and he says that in the last land deal effected at Orient everything was not done as per shareholder's interests - make what you may out of this.
The stock price does not seem to be bothered though as it has been a 15 bagger in this bull run. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Vivek Sukhani
Date Posted: 12/Oct/2009 at 9:51pm
|
The kind of performance it has displayed in bad times, doesnt seem to suggest that management is a suspect. Price movement is one thing, but financial performance has been exemplary.
What gives more weightage to the performance is that they are sharing the 'beans'.
When it comes to business, if mass housing and LIG MIG housing develops in a significant manner, this company would be a big beneficiary. ------------- Jai Guru!!! |
Posted By: samirarora
Date Posted: 15/Oct/2009 at 7:34pm
Its interesting, that visaka was mentioned just yesterday and it was being recommended on CNbc today via a Mr. Ashish Chugh.... said visaka is great.... the stock went one upper circuit freeze after the recommendation..
I personally have gone in for Hyderabad Industries.....
If Vivekji has passed it... i guess it must be better!!!!
Best wishes,
samir. ------------- |
Posted By: smartcat
Date Posted: 15/Oct/2009 at 1:00am
|
The really long term business prospects of Hyd Ind and Visaka is suspect - because of the usage of asbestos.
Asbestos usage is banned in most developed countries because of health risks. Visaka's website mentions this though -
|
Posted By: vishmitt
Date Posted: 15/Oct/2009 at 2:29am
|
I have been holding Visaka for more than a year @45, and don't go by CNBC!
IMO, Visaka is far better than Hyd or other companies in the industry.
- It used to be smallest of the 4 main listed companies 4 year ago, and now is No 2, and can be ahead of Hyd in 2 years time.
- Its ROE is less than Hyd right now, but with increasing cash flow, and paring down of debt, I expect this to improve.
- Capital allocation wise too, I find it better than Hyd and Ramco.
- Looking at the dividend history, details in annual report, and my interaction with the mgmt, I find Visaka to be investor friendly.
- Generally, I would avoid C K Birla companies from competence point of view.
Also, the valuation in terms of P/B - Visaka is 1, Hyd is 1.7. Div Yield - Visaka 3.2, Hyd 2.4.
Visaka also has a small textile business, which is also doing very well.
|
Posted By: Hitesh Shah
Date Posted: 15/Oct/2009 at 7:46am
I remember asking about this elsewhere. Of course, we Indians are "different" and so asbestos is still popular. Just wait till some phirang decides to sue. Strangely, Greenpyss is silent on this matter. Maybe, they're more occupied with opposing GM brinjal currently. ------------- |
Posted By: samirarora
Date Posted: 15/Oct/2009 at 9:12am
|
Earning per share for June 2009 quarter= 41.92
Best in many years...Wanted to not buy, but numbers are extremely tempting... am thinking stock will get re-rated, once they give similar numbers for some quarters more.
If not, its still ok, 242 book value, market cap - less than 300 crores, CMP- 400ish, nice dividend, a possible (highly ) bonus canditate, if this kind of quarterly performance continues.
Management is not popular, but not necessarily the worst we have in India...atleast its an old family company has been in business for all these years and paying dividends etc.
Governer of Andhra Pradesh is one of the shareholders and if i am correct some other government agencies.. dont see management doing too much gufla .
Nice to buy a small quantity in portfolio... the fill it, shut it, forget it types.. in my opinion.
Its product has tremendous scope in India...asbestos is a problem, but by the time, that gets banned in India, i am sure, they will have an alternate... i am sure they already have an alternate, but dont use it, as it must be expensive... but i dont see business ending, just because asbestos is banned.
Best wishes,
samir. ------------- |
Posted By: Hitesh Shah
Date Posted: 15/Oct/2009 at 9:18am
No one implied that the business would end, but the litigation could be endless  .And they do have non-asbestos products as well. In fact, Hyd. Ind's web site highlights their "green" focus. ------------- |
Posted By: Vivek Sukhani
Date Posted: 15/Oct/2009 at 9:55am
If there's one thing which I like more in Hyderabad Industries than in visaka, is the ratio of turnover to equity share capital. That gives the company to witness an earnings explosion.
Sure, the price is also three times that of Visaka......so that leaves it to individual preference. You are more comfortable holding a non-CK Birla company, I am more comfortable holding a CK Birla company....thats perfectly acceptable. ------------- Jai Guru!!! |
Posted By: samirarora
Date Posted: 15/Oct/2009 at 9:59am
|
Hi Hiteshji,
I know what you mean...ending is a strong word... what i meant is, that alternatives are there....personally am all for a greener earth, and would not buy an asbestos product for my own house...but it has its uses, warehouses, godowns...and what not.
its odd, that all of a sudden, there is this interest in visaka as well as hyderabad industries on tv.
best wishes,
samir. ------------- |
Posted By: nitin_jagtap
Date Posted: 15/Oct/2009 at 10:44am
|
Sanjoy Bhattacharya had written about Hyd Inds in the Forbes India a couple of weeks back ------------- Warm REgards Nitin Jagtap |
Posted By: samirarora
Date Posted: 16/Oct/2009 at 1:22pm
|
Hyderabad Industries flying high at 450.00 , exccceeeellllleeent move!!! ------------- |
Posted By: value
Date Posted: 19/Oct/2009 at 1:08pm
I think there is too much of negative publicity against the word "asbestos", that it just envokes negative emotions inside our brains. As I understand, there are different forms of asbestos - and the "dangerous ones" are not used here in india for roofing. The annual report of visaka mentions the technical details of different types. In Brazil - one of the largest miner of asbestos - government finds that AC roofing provides shelter to lot of poor people. So its a question of low-cost housing to poor VS negative publicity against all forms of material. Same is the case with india - esp in rural areas, where such low-cost-shelter helps a poor guy shifts from mud/thatched roof to something better. Many of us too use AC roofs at the top of our houses for roofing even in cities. I dont feel that historically markets had been worried about "asbestos"/ Had markets been too much worried about negative emotions attached with Asbestos - these companies wouldnt have acheived good valuations which they did in 2005 or 2006. Most of these companies were valued at 2-3x book & 12-15 pe during that period...........were the markets crazy then or is it now??....... Only in 2007, the industry faced problem due to overcapacity, which was subsequently rectified by growing demands in cy2008 and cy2009. Its not that these cos are not producing profits - they have done well over years. Hyderabad IND is there for more than 40-50yrs - Visaka is there for 20-25yrs, Same with Ramco.. ... and the promotors are doing capex to increase the capacity even today. So why the fear of threat to the business?? And they have paid consistent dividend, even in bad yr of 2007. Hyderabad's book per share fy10 should be 330-340 by yr end. VISAKA should be 150-160 - selling for less than book ... Their PE is less than 5 .. I think even today, they arnt even yet fetching fraction of 2005 value, when it wasnt even bull market. |
Posted By: Vivek Sukhani
Date Posted: 29/Oct/2009 at 1:17pm
|
http://www.bseindia.com/xml-data/corpfiling/announcement/Hyderabad_Industries_Ltd_281009_Rst.pdf - http://www.bseindia.com/xml-data/corpfiling/announcement/Hyderabad_Industries_Ltd_281009_Rst.pdf
Reasonable set of numbers....... ------------- Jai Guru!!! |
Posted By: samirarora
Date Posted: 29/Oct/2009 at 5:02pm
|
Yes... with a Rs.100.00+ EPS expected this year in this company, i would think its inevitable it will cross rs.500.00 soon... and also, chances of a bonus are going to be increased.
Crazy.... approx.100-120 EPS on a rs.400 share... if all goes well, maybe better
best wishes,
samir. ------------- |
Posted By: 9StockPortfolio
Date Posted: 12/Jan/2010 at 11:26am
|
Is it still that much attractive? at CMP 575? ------------- Pursuit of Value |
Posted By: NeerajMarathe
Date Posted: 13/Jan/2010 at 12:24pm
|
I wudnt buy it now...but having bought it earlier, i wudnt sell it either..
- Good revenue visibility..decent consistent growth. - Excellent financial position..(gud free cash generation and dividend)and gud mgmt.. - Fair valuations..not undervalued now...but not grossly overvalued either.. All in all, a good 'hold' imho..will wait for sumthn like 800+ to sell..thats where it surely goes beyond fair valuations.. ------------- Regards Neeraj Marathe |
Posted By: Vivek Sukhani
Date Posted: 13/Jan/2010 at 7:36pm
A lot will depend on the interim dividend it will declare. Ideally, they should declare something close to 10 rupees a share.
The thing is, it was way too cheap at near 420-430 levels. When you have most stocks trading at 20+ P/E, this was still available at sub-5 P/E. That called for some "correction", and a 30-40 p.c correction is what has taken it to the current levels.
If the results are bombastic, this stock will run hard. ------------- Jai Guru!!! |
Posted By: Crazy
Date Posted: 14/Jan/2010 at 4:55pm
Lots of "ifs" and "buts"
And wat if the interim div is Rs. 5 or Rs.15 ?
Rs.5 here and there on an EPS of above Rs.100, can impact the stock price by a few hundred rupees? Its not only strange but also funny.
|
Posted By: Vivek Sukhani
Date Posted: 14/Jan/2010 at 8:22pm
5 rupees would be a dampener.
Hyderabad Industries doesnt need a lot of capex. So, ideally on an EPS of rs.100( if they could achieve that), a minimum dividend of 25 rupees per share is definitely warranted.
------------- Jai Guru!!! |
Posted By: 9StockPortfolio
Date Posted: 15/Jan/2010 at 12:49pm
EPS for 3 Qtrs 85..on it's way to 100 by Mar10 ------------- Pursuit of Value |
Posted By: Crazy
Date Posted: 15/Jan/2010 at 1:42pm
| y has the stock been battered then? possibly because the div is low. |
Posted By: Ashutosh
Date Posted: 15/Jan/2010 at 2:31pm
|
Hyderabad Industries Ltd has announced the Financial Results for the quarter ended December 31, 2009. The Net Sales was at Rs.146.01 crores for quarter ending on 31-Dec-2009 as compared to Rs.129.64 crores for quarter ending on 31-Dec-2008. The Net Profit / (Loss) was at Rs.14.55 crores for the quarter ending on 31-Dec-2009 as compared to Rs.8.60 crores for quarter ending on 31-Dec-2008. The EPS was at Rs 19.50 for the quarter ending on 31-Dec-2009 as compared to Rs 8.84 for the quarter ending on 31-Dec-2008. The Net Sales was at Rs.497.2 crores for 9 months ending on 31-Dec-2009 as compared to Rs.435.06 crores for 9 months ending on 31-Dec-2008. The Net Profit / (Loss) was at Rs.63.44 crores for the 9 months ending on 31-Dec-2009 as compared to Rs.35.62 crores for 9 months ending on 31-Dec-2008. The EPS was at Rs 85.01 for 9 months ending on 31-Dec-2009 as compared to Rs 47.74 for 9 months ending on 31-Dec-2008.Hyderabad Industries Ltd has announced the Financial Results for the quarter ended December 31, 2009. The Net Sales was at Rs.146.01 crores for quarter ending on 31-Dec-2009 as compared to Rs.129.64 crores for quarter ending on 31-Dec-2008. The Net Profit / (Loss) was at Rs.14.55 crores for the quarter ending on 31-Dec-2009 as compared to Rs.8.60 crores for quarter ending on 31-Dec-2008. The EPS was at Rs 19.50 for the quarter ending on 31-Dec-2009 as compared to Rs 8.84 for the quarter ending on 31-Dec-2008. The Net Sales was at Rs.497.2 crores for 9 months ending on 31-Dec-2009 as compared to Rs.435.06 crores for 9 months ending on 31-Dec-2008. The Net Profit / (Loss) was at Rs.63.44 crores for the 9 months ending on 31-Dec-2009 as compared to Rs.35.62 crores for 9 months ending on 31-Dec-2008. The EPS was at Rs 85.01 for 9 months ending on 31-Dec-2009 as compared to Rs 47.74 for 9 months ending on 31-Dec-2008. Source: equitybulls
What is the interim dividend declared ?? ------------- My tastes are simple: I am easily satisfied with the best |
Posted By: hit2710
Date Posted: 15/Jan/2010 at 2:51pm
Because the expectations were much higher. Q-on Q the sales and net profits have dipped for 3 quarters although y-on Y numbers are good. But I believe there must be some seasonality to its sales and profit numbers. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Ashutosh
Date Posted: 15/Jan/2010 at 3:02pm
|
it is 60% and INR 6/- ------------- My tastes are simple: I am easily satisfied with the best |
Posted By: Vivek Sukhani
Date Posted: 15/Jan/2010 at 3:13pm
 ------------- Jai Guru!!! |
Posted By: Vivek Sukhani
Date Posted: 15/Jan/2010 at 3:16pm
|
Well, this kind of reaction is nothing but a start to the preparation for a big move up. It needed to pause, which is most likely, but should be followed by a big move. ------------- Jai Guru!!! |
Posted By: Crazy
Date Posted: 15/Apr/2010 at 2:13pm
when will the big move happen ? yahan bhi thoda bhaav badhao sirjee ! Aap to choti companies ke bade operator ho. pura quarter nikal gaya.... isko bhool gaye kya ? |
Posted By: 9StockPortfolio
Date Posted: 05/May/2010 at 3:58pm
|
Vivekbhai, http://www.bseindia.com/xml-data/corpfiling/announcement/Hyderabad_Industries_Ltd_050510_Rst.pdf - Hyderabad results are out.. and mkt has appreciated the results. Wht is your take on it? Why Hyd is not able to command over 10 PE? Do you think Dividend of Rs.16 low? Warm regards ------------- Pursuit of Value |
Posted By: TCSer
Date Posted: 05/May/2010 at 6:41pm
| fantastic results. just buy n hold .sure to touch 4 figures over next 12-18 months.the type of money moving into rural hinterlands of bihar,up n bengal is mindboggling.cement per bag i selling for 330 rs like hotcakes n simlar is the story for asbestos sheet.moneyorder econonmy is in full swing. |
Posted By: Vivek Sukhani
Date Posted: 05/May/2010 at 6:49pm
|
16 rupees is acceptable, but when one looks at the EPS, it does appear quite low. Less than 10 p.c payout is not justifiable.
What I liked in the results was the fixed asset addition. Any investment in productive capacity is a welcome move. Also, they have trimmed borrowings, but that should have been more aggressively done.
I guess, they will go for a split this year or next year.
The reason why its not commanding a fancy P/E is because markets may be assuming this kind of a performance is non-repetitive. Also, the management is to be blamed partly for low P/E. They should have gone for a better dividend or a bonus, given the earnings and reserves position. ------------- Jai Guru!!! |
Posted By: samirarora
Date Posted: 05/May/2010 at 7:41pm
|
Since this is only the first year of huge kind of EPS, i think hyderabad industries would do well by not distributing it all away... and if good performance continues, then they can get generous later on anyway.
Also, i am happy that they have not gone for stuff like bonus only after one good year..they can always announce a bonus mid year, after seeing what happens in the coming months.
Maybe they gave lesser dividend and would be using the funds to bring up the factory in bihar that i keep hearing about, if that is true ie.
All in all, EPS of 120 is what everyone was looking for, and that has been delivered and i think its better to look at the positives for now.
Having said that, i do think , its about time, the birlas became a bit more open and started to reward their shareholders...
Holding on to hyderabad industries.. lets see what the coming quarters bring. .. ------------- |
Posted By: Crazy
Date Posted: 05/May/2010 at 7:50pm
Thats good news for hyd industries isnt it ?  They dont sell cement, they consume cement. |
Posted By: TCSer
Date Posted: 05/May/2010 at 11:41pm
i know that their plant is not situated in north bihar .as such they are not affected by high cement prices prevailing there. what i was trying to imply was about the huge demand in rural hinterland of india which makes companies like hyderabad industries a direct beneficiary. |
Posted By: TCSer
Date Posted: 05/May/2010 at 12:29pm
|
hyderabad industries to cross 1000 rs in 6 months. http://economictimes.indiatimes.com/markets/stocks/views/recommendations/Hyderabad-Industries-to-cross-1000-in--six-months-Seshadri-Bharathan-KSEMA-Fincon-Ltd/articleshow/5893406.cms |
Posted By: bihisello
Date Posted: 05/May/2010 at 11:55am
| This is running very fast today. Can't catch it with limit order.!!! |
Posted By: atulbull
Date Posted: 05/May/2010 at 11:57am
Expect double-digit growth next quarter: Hyderabad IndHyderabad Industries has announced its fourth quarter results. The company's Q4 net profit was up at Rs 26.2 crore versus Rs 8.4 crore. Net sales came in at Rs 206.4 crore versus Rs 183.8 crore. Abhay Shankar, Managing Director of http://www.moneycontrol.com/india/stockpricequote/cement-productsbuilding-materials/hyderabad-industries/HI09 - expects double-digit growth going into next quarter. “We are planning capex of Rs 100 crore in FY11.” Funds for capex, he says, will be raised by a combination of debt and internal accruals. Going forward, Shankar expects margins to hold at Q4 levels. ------------- Price is what you pay.Value is what you get. |
Posted By: camanoj
Date Posted: 06/May/2010 at 12:17pm
------------- Manoj |
Posted By: atulbull
Date Posted: 06/May/2010 at 1:29pm
http://www.moneycontrol.com/news/recommendations/buy-hyderabad-ind-targetrs-800-fairwealth-sec_456104.html - Buy Hyderabad Ind; target of Rs 800: Fairwealth Sec------------- Price is what you pay.Value is what you get. |
Posted By: samirarora
Date Posted: 06/May/2010 at 3:16pm
|
He he.. with such low floating stock, i wonder if everyone will get the quantity they want.. ------------- |
Posted By: TCSer
Date Posted: 06/May/2010 at 7:55pm
|
http://www.moneycontrol.com/news/results-boardroom/expect-double-digit-growth-next-quarter-hyderabad-ind_456071.html hyderabad industries n other asbestos sheet manufacturing cos are in a sweet spot because due to less demand in places other than india price of the main 100 percent imported rawmaterial keeps on falling leading to handsome margins for these indian cos. now the moot question is whether this import of hazardous raw material banned in so many countries will continue or banned even in india,. btw owner of visaka industries is a congress mp so things shud remain hunky dory for these cos. |
Posted By: Vivek Sukhani
Date Posted: 22/Jun/2010 at 6:58pm
|
http://www.bseindia.com/stockinfo/anndet.aspx?newsid=3BD4F0E5-BA3B-4FCA-A2D2-6D9A8418C661&flag=I&type=A&scrip_CD=509675 - http://www.bseindia.com/stockinfo/anndet.aspx?newsid=3BD4F0E5-BA3B-4FCA-A2D2-6D9A8418C661&flag=I&type=A&scrip_CD=509675
------------- Jai Guru!!! |
Posted By: atulbull
Date Posted: 21/Jul/2010 at 8:54pm
|
HYDERABAD INDUSTRIES net profit declines 11.75% in the June 2010 quarter
Sales rise 4.10% to Rs 216.29 crore Net profit of Hyderabad Industries declined 11.75% to Rs 27.71 crore in the quarter ended June 2010 as against Rs 31.40 crore during the previous quarter ended June 2009. Sales rose 4.10% to Rs 216.29 crore in the quarter ended June 2010 as against Rs 207.78 crore during the previous quarter ended June 2009.
------------- Price is what you pay.Value is what you get. |
||||||||||||||||||||||||||||
Posted By: basant
Date Posted: 21/Jul/2010 at 10:29pm
|
That's how cheap stocks are expected to behave aren't they? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Vivek Sukhani
Date Posted: 21/Jul/2010 at 10:44am
I guess we are paying about 6 times just because earnings are going to be volatile.
Now that Dharuhera is back to normal operations, and Golan has started commercial production, turnover will not be an issue. What I would like now is a very fast pruning of debt, which in any case, is well withing limits, but can be further brought down. That interest payment is lower for this quarter is signalling that the company may be taking step in that direction. Higher depreciation is perfectly okay.
Hyderabad Industries' price performance will depend a lot on the balance sheet exercise now. P/L with a quarterly EPS of 37 rupees a share is not a problem( even though its down from corresponding quarter last year). Even if the company ends with a full year EPS of 80 rupees, that wont have a huge impact on the market capitalisation in my opinion.******** ******** ****** ****** ******* ***** ****** ------------- Jai Guru!!! |
|||||||||||||||||||||||||||||
Posted By: samirarora
Date Posted: 22/Jul/2010 at 3:13pm
|
how interesting, am curious to know, what basantji edited in above post!!!
someone please pm and tell!!!!....please!!! ------------- |
Posted By: SK1076
Date Posted: 25/Jul/2010 at 11:58am
Only Sukhani ji would know. May be sukhani ji can repost with different words  |
Posted By: Ashutosh
Date Posted: 22/Oct/2010 at 2:11pm
|
Hyderabad Industries is up by 12% ...any specific news or event for this company ? ------------- My tastes are simple: I am easily satisfied with the best |
Posted By: excel_monkey
Date Posted: 04/Jan/2011 at 10:27pm
|
doesn't Hyderabad industries look good from here at a P/E of 5
Management said in an interview that going forward things are looking good http://www.moneycontrol.com/news/business/realisations-to-firm-upquarters-ahead-hyderabad-inds_509969.html |
Posted By: TCSer
Date Posted: 04/Jan/2011 at 11:02pm
|
All CK Birla cos are dog of companies. Will avoid them like plagues in future. |
Posted By: bitu1978
Date Posted: 04/Jan/2011 at 11:56pm
Yeah and results of Hyd Industries have been Consistently inconsistent in past many quarters |