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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Orient Cement Ltd

About the Company - Orient Cement Ltd

Orient Cement Ltd. is a Public Limited Listed company incorporated on 22/07/2011 and has its registered office in the State of Orissa, India. Company’s Corporate Identification Number(CIN) is L26940OR2011PLC013933 and registration number is 013933. Currently Company is involved in the business activities of Manufacture of cement, lime and plaster. Company’s Total Operating Revenue is Rs. 2725.42 Cr. and Equity Capital is Rs. 20.49 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
CementUnit VIII, Plot No.7, Bhubaneshwar Orissa 751012investors@orientcement.com
http://www.orientcement.com
Management
NamePosition Held
Mr. Chandrakant BirlaChairman
Mr. Desh Deepak KhetrapalManaging Director & CEO
Mr. Rabindranath JhunjhunwalaDirector
Mrs. Amita BirlaDirector
Mr. Rajeev JhawarDirector
Mr. Janat ShahDirector
Mr. Swapan DasguptaDirector
Mr. I Y R Krishna RaoDirector
Mrs. Varsha Vasant PurandareDirector

Orient Cement Ltd. Share Price Update

Share PriceValue
Today₹264.95
Previous Day₹267.30

Basic Stock Data of Orient Cement Ltd

Market Cap 4,907 Cr.
Current Price 240
High / Low294/105
Stock P/E28.2
Book Value 80.3
Dividend Yield0.62 %
ROCE12.0 %
ROE7.85 %
Face Value 1.00

Data Source: screener.in

Competitors of Orient Cement Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
J K Cements Ltd 33,563 Cr. 4,3444,565/2,70848.5 6310.35 %10.4 %9.48 % 10.0
The India Cements Ltd 7,473 Cr. 241277/167 1820.00 %3.70 %5.46 % 10.0
UltraTech Cement Ltd 2,86,638 Cr. 9,92910,526/6,99144.7 1,9450.38 %12.9 %9.63 % 10.0
JK Lakshmi Cement Ltd 11,109 Cr. 9441,000/60726.5 2470.40 %14.2 %13.1 % 5.00
Shree Cement Ltd 94,532 Cr. 26,20030,738/22,60140.2 5,3130.37 %8.99 %7.45 % 10.0
Industry Average86,663.00 Cr8,331.6031.981,663.600.30%10.04%9.02%9.00

Orient Cement Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales478605832691613618804714615732876825721
Expenses364468629505479500651612583642737726634
Operating Profit11313720318613411815310233901399987
OPM %24%23%24%27%22%19%19%14%5%12%16%12%12%
Other Income3732322151542
Interest26241616151658111010109
Depreciation35363635363737363737363737
Profit before tax5484153137866711459-1045985742
Tax %36%36%35%35%34%35%36%37%6%38%31%35%42%
Net Profit35541008957447337-1028673725
EPS in Rs1.702.634.884.372.782.133.571.83-0.461.343.291.811.20

Orient Cement Ltd Quarterly Chart

Orient Cement Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales01,5001,4371,5451,4621,8752,2222,5222,4222,3242,7252,9383,154
Expenses21,1811,2221,2391,2771,6961,9162,2102,0391,7732,1342,5732,739
Operating Profit-2319215307186179306312383551591365416
OPM %21%15%20%13%10%14%12%16%24%22%12%13%
Other Income049681119141818101212
Interest01914145413512911812294513838
Depreciation056564778122126133141142145147147
Profit before tax-224915325161-667075137334404192243
Tax %33%35%34%22%-2%52%37%36%37%36%35%36%
Net Profit-116210119562-32444887214263123157
EPS in Rs-21.407.894.939.513.04-1.572.162.324.2310.4512.856.007.64
Dividend Payout %0%25%30%18%33%-32%35%32%18%19%19%25%

Orient Cement Ltd Profit & Loss Yearly Chart

Orient Cement Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:6%
3 Years:7%
TTM:11%
Compounded Profit Growth
10 Years:-3%
5 Years:23%
3 Years:12%
TTM:35%
Stock Price CAGR
10 Years:21%
5 Years:30%
3 Years:42%
1 Year:119%
Return on Equity
10 Years:10%
5 Years:12%
3 Years:14%
Last Year:8%

Orient Cement Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital0202020202020202020202020
Reserves-17368089551,0209671,0021,0331,0981,2851,5051,5831,624
Borrowings01493291,1061,2851,3361,3141,2901,226798316398259
Other Liabilities2353404484571560601584555708809875896
Total Liabilities11,2581,5612,5662,8962,8832,9372,9272,9002,8122,6502,8772,800
Fixed Assets08548267982,2072,2962,2512,3552,2722,2072,1152,0102,047
CWIP0403281,319239981584867414014068
Investments0000000001151444
Other Assets1365408448450489528525562448481723681
Total Assets11,2581,5612,5662,8962,8832,9372,9272,9002,8122,6502,8772,800

Orient Cement Ltd Reserves and Borrowings Chart

Orient Cement Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 0263192156268259279281292714524111
Cash from Investing Activity 0-52-279-922-371-124-149-120-73-16270-120
Cash from Financing Activity 0-1349272798-108-161-171-206-552-58635
Net Cash Flow0765-40-527-31-10130826

Orient Cement Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days1916192321252624171721
Inventory Days140114213236196230269269192192331
Days Payable124137214340268280270201207238203
Cash Conversion Cycle35-719-81-52-2525932-29150
Working Capital Days-6-313-5-22-16-11-5-21-1711
ROCE %59%16%16%5%3%9%8%11%19%23%12%

Orient Cement Ltd Financial Efficiency Indicators Chart

Orient Cement Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters37.37%37.37%37.37%37.37%37.37%37.90%37.90%37.90%37.90%37.90%37.90%37.90%
FIIs2.09%4.43%5.97%6.64%6.54%5.83%6.43%6.02%7.72%5.87%6.30%6.71%
DIIs24.08%20.64%15.92%15.41%14.83%13.32%11.30%11.02%9.53%10.64%12.89%13.14%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.03%0.03%0.00%0.00%
Public36.46%37.56%40.74%40.59%41.26%42.95%44.38%45.04%44.81%45.54%42.90%42.26%
No. of Shareholders50,78264,83289,30899,9781,08,2211,12,3481,11,8051,11,8341,12,0721,02,50690,23886,864

Orient Cement Ltd Shareholding Pattern Chart

No. of Orient Cement Ltd Shareholders

Orient Cement Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Small Cap Fund58652680.37152.53
Aditya Birla Sun Life Pure Value Fund37735531.998.13
ICICI Prudential Commodities Fund18150492.8747.2
Mahindra Manulife Multi Cap Fund16500001.7442.91
Aditya Birla Sun Life Small Cap Fund13341410.6934.69
Quant Value Fund13125493.8534.13
HDFC Multi Cap Fund11100000.2928.87
Mahindra Manulife Small Cap Fund9547430.9724.83
ICICI Prudential Infrastructure Fund8764460.6222.79
Bandhan Small Cap Fund5371320.4313.97

Orient Cement Ltd ROCE Trend

Orient Cement Ltd EPS Trend

Orient Cement Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)5.9912.8510.454.232.32
Diluted EPS (Rs.)5.9912.8510.454.232.32
Cash EPS (Rs.)13.1619.9417.3811.108.80
Book Value[Excl.RevalReserv]/Share (Rs.)78.2874.4663.7454.5951.42
Book Value[Incl.RevalReserv]/Share (Rs.)78.2874.4663.7454.5951.42
Dividend / Share (Rs.)1.502.502.000.750.75
Revenue From Operations / Share (Rs.)143.39133.03113.44118.21123.11
PBDIT / Share (Rs.)18.3829.3227.7819.5515.91
PBIT / Share (Rs.)11.2122.2320.8512.689.43
PBT / Share (Rs.)9.3719.7216.286.713.65
Net Profit / Share (Rs.)5.9912.8510.454.232.32
PBDIT Margin (%)12.8122.0324.4816.5412.92
PBIT Margin (%)7.8216.7118.3810.727.66
PBT Margin (%)6.5314.8214.355.672.96
Net Profit Margin (%)4.189.659.213.571.88
Return on Networth / Equity (%)7.6517.2516.407.744.51
Return on Capital Employeed (%)11.0823.0318.3410.747.98
Return On Assets (%)4.269.937.612.981.62
Long Term Debt / Equity (X)0.060.090.601.021.16
Total Debt / Equity (X)0.240.200.601.021.17
Asset Turnover Ratio (%)1.060.990.810.830.85
Current Ratio (X)0.830.641.001.000.89
Quick Ratio (X)0.390.360.650.510.53
Inventory Turnover Ratio (X)4.959.546.701.131.74
Dividend Payout Ratio (NP) (%)37.5317.5111.9517.7432.31
Dividend Payout Ratio (CP) (%)17.0911.287.196.758.52
Earning Retention Ratio (%)62.4782.4988.0582.2667.69
Cash Earning Retention Ratio (%)82.9188.7292.8193.2591.48
Interest Coverage Ratio (X)9.9711.686.083.272.75
Interest Coverage Ratio (Post Tax) (X)4.256.123.291.711.40
Enterprise Value (Cr.)2570.803183.212755.392014.372841.99
EV / Net Operating Revenue (X)0.871.171.190.831.13
EV / EBITDA (X)6.835.304.845.038.72
MarketCap / Net Operating Revenue (X)0.761.070.860.370.65
Retention Ratios (%)62.4682.4888.0482.2567.68
Price / BV (X)1.401.911.540.811.56
Price / Net Operating Revenue (X)0.761.070.860.370.65
EarningsYield0.050.090.100.090.02

Orient Cement Ltd Profitability Ratios (%)

Orient Cement Ltd Liquidity Ratios

Orient Cement Ltd Liquidity Ratios (%)

Orient Cement Ltd Interest Coverage Ratios (%)

Orient Cement Ltd Valuation Ratios

Fair Value / Intrinsic Value of Orient Cement Ltd

Fair Value: ₹178.86

The stock is overvalued by 25.47% compared to the current price ₹240

*Investments are subject to market risks

Strength and Weakness of Orient Cement Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 15.08%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -6.83, which is a positive sign.
  3. The company has higher reserves (1,047.31 cr) compared to borrowings (754.31 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (1.54 cr) and profit (161.62 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 22.19 and average Dividend Yield of 12.26%.
  2. The stock has a high average Cash Conversion Cycle of 10.83, which may not be favorable.

Should I Buy Orient Cement Ltd Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Orient Cement Ltd:
    1. Net Profit Margin: 4.18%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.08% (Industry Average ROCE: 12.26%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 4.25
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.39
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 30.1 (Industry average Stock P/E: 14.74)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.24
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Orient Cement Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE