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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Shree Digvijay Cement Co. Ltd

Basic Stock Data

Last Updated: June 22, 2024, 10:24 pm

Market Cap 1,617 Cr.
Current Price 110
High / Low124/75.7
Stock P/E18.4
Book Value 25.9
Dividend Yield2.74 %
ROCE34.1 %
ROE24.9 %
Face Value 10.0
PEG Ratio2.21

Competitors of Shree Digvijay Cement Co. Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
JK Lakshmi Cement Ltd 9,714 Cr. 8261,000/60720.8 2710.45 %17.2 %15.6 % 5.00
KCP Ltd 3,163 Cr. 245274/10516.7 1090.04 %15.4 %14.3 % 1.00
Birla Corporation Ltd 12,123 Cr. 1,5741,802/1,06129.2 8670.16 %8.99 %6.57 % 10.0
Star Cement Ltd 8,721 Cr. 216256/14029.6 67.00.00 %16.4 %11.5 % 1.00
Gujarat Sidhee Cement Ltd 296 Cr. 33.1/ 52.20.00 %6.94 %4.33 % 10.0
Industry Average28,146.10 Cr1,962.3816.80493.630.40%11.61%15.41%7.41

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales175155154152169161162206195193183191224
Expenses128114126132140130147190157162165142176
Operating Profit47412819293115163831184948
OPM %27%26%18%13%17%19%9%8%20%16%10%26%21%
Other Income2111112132223
Interest0000001001110
Depreciation7778999999988
Profit before tax423421122123883223104243
Tax %35%37%36%38%39%26%25%-30%24%24%29%25%26%
Net Profit27221371317610241773132
EPS in Rs1.931.520.930.510.891.190.410.711.681.190.502.142.15

Last Updated: June 9, 2024, 6:24 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:04 am

MonthDec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales383332411474315413436470503629725792
Expenses342342394432307366410369397512624646
Operating Profit41-11184184827101106117101146
OPM %11%-3%4%9%3%12%6%21%21%19%14%18%
Other Income21-873126526479
Interest137131111422112
Depreciation101314262223242527313535
Profit before tax51-3545-1421377838871118
Tax %19%-2%0%0%35%35%38%26%35%37%19%26%
Net Profit41-3645-91325654555888
EPS in Rs2.92-2.510.260.37-0.640.950.153.993.793.843.975.95
Dividend Payout %0%0%0%0%0%0%0%38%66%91%101%50%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-280.00%244.44%-84.62%2700.00%-3.57%1.85%5.45%51.72%
Change in YoY Net Profit Growth (%)0.00%524.44%-329.06%2784.62%-2703.57%5.42%3.60%46.27%

Growth

Compounded Sales Growth
10 Years:9%
5 Years:13%
3 Years:16%
TTM:9%
Compounded Profit Growth
10 Years:20%
5 Years:115%
3 Years:17%
TTM:52%
Stock Price CAGR
10 Years:21%
5 Years:45%
3 Years:11%
1 Year:27%
Return on Equity
10 Years:13%
5 Years:20%
3 Years:20%
Last Year:25%

Last Updated: May 30, 2024, 7:02 pm

Balance Sheet

MonthDec 2011Dec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital141141141141141141141141141142144145147
Reserves4284485257637778135169168179168
Borrowings28296486116962540000032
Other Liabilities827667829978107100103120150143148
Total Liabilities294330320361414378351360380432462468496
Fixed Assets109102160206216217201194188182197182180
CWIP677213400810913575
Investments354040000000002
Other Assets82115143151197161142156182237260279309
Total Assets294330320361414378351360380432462468496

Reserves and Borrowings Chart

Shree Digvijay Cement Co. Ltd Cash Flow

MonthDec 2011Dec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4521-22252131102-294955786
Cash from Investing Activity -67-2012-25-32-29-12-4-14-97-40-37
Cash from Financing Activity 23-1282517-32-8112-42-21-56-50
Net Cash Flow1-119255-308638-23-39-0

Free Cash Flow

MonthDec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow12.00-75.00-68.00-75.00-88.0023.00-13.00101.00106.00117.00101.00146.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2011Dec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days65512126111188811
Inventory Days552735442213334437181253352342517425
Days Payable248260163121188213236231258234255231
Cash Conversion Cycle310480284104158230-4533101116270205
Working Capital Days-2414-1152319-33-12-8-61613
ROCE %6%17%-7%4%7%-1%12%3%29%29%29%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters56.65%56.22%56.19%56.12%56.12%56.01%56.01%55.66%55.62%55.07%55.07%54.83%
FIIs0.24%0.38%0.46%0.29%0.23%0.22%0.18%0.12%2.84%2.93%2.91%2.07%
DIIs0.00%0.00%0.01%0.00%0.00%0.06%0.00%0.00%0.00%0.30%0.70%0.47%
Public43.11%43.40%43.35%43.59%43.65%43.69%43.81%44.22%41.54%41.70%41.32%42.62%
No. of Shareholders57,54364,31366,17970,99771,95772,14872,69672,01169,62774,17674,09285,442

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Union Value Fund325,0001.533.05300,0002024-06-208.33%
Union Small Cap Fund300,0000.222.81300,0002024-06-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21
FaceValue10.0010.0010.0010.00
Basic EPS (Rs.)6.014.023.863.79
Diluted EPS (Rs.)6.003.973.783.66
Cash EPS (Rs.)8.306.436.025.68
Book Value[Excl.RevalReserv]/Share (Rs.)25.8822.3821.6821.86
Book Value[Incl.RevalReserv]/Share (Rs.)25.8822.3821.6821.86
Revenue From Operations / Share (Rs.)53.7450.0543.7035.34
PBDIT / Share (Rs.)10.517.448.407.82
PBIT / Share (Rs.)8.165.016.225.94
PBT / Share (Rs.)8.024.926.125.83
Net Profit / Share (Rs.)5.964.003.843.79
NP After MI And SOA / Share (Rs.)5.964.003.843.79
PBDIT Margin (%)19.5614.8719.2322.14
PBIT Margin (%)15.1910.0114.2416.80
PBT Margin (%)14.929.8314.0116.48
Net Profit Margin (%)11.087.998.7810.73
NP After MI And SOA Margin (%)11.087.998.7810.73
Return on Networth / Equity (%)23.0017.8717.7017.34
Return on Capital Employeed (%)30.3021.1926.2725.80
Return On Assets (%)16.4012.4011.9512.50
Asset Turnover Ratio (%)1.581.561.410.00
Current Ratio (X)1.992.061.912.11
Quick Ratio (X)1.021.140.861.39
Inventory Turnover Ratio (X)1.231.071.210.00
Dividend Payout Ratio (NP) (%)0.0086.86103.5439.29
Dividend Payout Ratio (CP) (%)0.0054.0566.0326.24
Earning Retention Ratio (%)0.0013.14-3.5460.71
Cash Earning Retention Ratio (%)0.0045.9533.9773.76
Interest Coverage Ratio (X)73.1880.8583.1369.85
Interest Coverage Ratio (Post Tax) (X)42.4544.4538.9634.85
Enterprise Value (Cr.)1416.32789.20912.64756.91
EV / Net Operating Revenue (X)1.791.091.451.51
EV / EBITDA (X)9.147.307.546.80
MarketCap / Net Operating Revenue (X)1.811.231.581.75
Retention Ratios (%)0.0013.13-3.5460.70
Price / BV (X)3.752.763.192.83
Price / Net Operating Revenue (X)1.811.231.581.75
EarningsYield0.060.060.050.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 121.91

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 10.83% compared to the current price 110

Intrinsic Value: 132.06

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 20.05% compared to the current price ₹110

Last 5 Year EPS CAGR: 8.32%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -0.33, which is a positive sign.
  2. The company has higher reserves (112.00 cr) compared to borrowings (38.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (490.25 cr) and profit (39.33 cr) over the years.
  1. The stock has a low average ROCE of 12.58%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 187.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Shree Digvijay Cement Co. Ltd:
    1. Net Profit Margin: 11.08%
      • 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: 30.30% (Industry Average ROCE: %)
      • 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. ROE%: 23.00% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 42.45
      • 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.
    5. Quick Ratio: 1.02
      • 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.
    6. ✗ Stock P/E: 18.4 (Industry average Stock P/E: )
      • 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.
    7. ✗ Total Debt / Equity: N/A
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Shree Digvijay Cement Company Ltd. is a Public Limited Listed company incorporated on 06/11/1944 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L26940GJ1944PLC000749 and registration number is 000749. Currently company belongs to the Industry of Cement. Company’s Total Operating Revenue is Rs. 629.34 Cr. and Equity Capital is Rs. 144.03 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
CementP. O. Digvijaygram, Jamnagar Dist. Gujarat 361140investors.sdccl@digvijaycement.com
http://www.digvijaycement.com
Management
NamePosition Held
Mr. Anil SinghviExecutive Chairman
Mr. K K Rajeev NambiarManaging Director & CEO
Mr. Pramod KabraNon Executive Director
Mr. Mahesh GuptaIndependent Director
Ms. Mitu SamarIndependent Director
Mr. Satish KulkarniIndependent Director

FAQ

What is the latest fair value of Shree Digvijay Cement Co. Ltd?

The latest fair value of Shree Digvijay Cement Co. Ltd is ₹121.91.

What is the Market Cap of Shree Digvijay Cement Co. Ltd?

The Market Cap of Shree Digvijay Cement Co. Ltd is 1,617 Cr..

What is the current Stock Price of Shree Digvijay Cement Co. Ltd as on 23 June 2024?

The current stock price of Shree Digvijay Cement Co. Ltd as on 23 June 2024 is ₹110.

What is the High / Low of Shree Digvijay Cement Co. Ltd stocks in FY 2024?

In FY 2024, the High / Low of Shree Digvijay Cement Co. Ltd stocks is 124/75.7.

What is the Stock P/E of Shree Digvijay Cement Co. Ltd?

The Stock P/E of Shree Digvijay Cement Co. Ltd is 18.4.

What is the Book Value of Shree Digvijay Cement Co. Ltd?

The Book Value of Shree Digvijay Cement Co. Ltd is 25.9.

What is the Dividend Yield of Shree Digvijay Cement Co. Ltd?

The Dividend Yield of Shree Digvijay Cement Co. Ltd is 2.74 %.

What is the ROCE of Shree Digvijay Cement Co. Ltd?

The ROCE of Shree Digvijay Cement Co. Ltd is 34.1 %.

What is the ROE of Shree Digvijay Cement Co. Ltd?

The ROE of Shree Digvijay Cement Co. Ltd is 24.9 %.

What is the Face Value of Shree Digvijay Cement Co. Ltd?

The Face Value of Shree Digvijay Cement Co. Ltd is 10.0.

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 Shree Digvijay Cement Co. 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