HIL Ltd – V shaped recovery in sight By IndiaNivesh

HIL Ltd, formerly known as Hyderabad Industries Ltd, is the market leader in the fibre cement sheet products with market share of 23%. The company is diversifying and expanding in green building products which would reduce its dependence on fibre cement sheets and take advantage of expected growth in construction industry. We expect the company to grow at a CAGR of 26.4% over FY14-FY16E with PAT increase of ~9.5x over the same period (benefitting from low base of FY14). We had recommended BUY in our Nivesh Discovery report at Rs 433 on 23 June 2014. We now initiate coverage on the stock maintaining BUY rating and target price of Rs 721.

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