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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of The India Cements Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:32 pm

Market Cap 10,826 Cr.
Current Price 350
High / Low360/173
Stock P/E
Book Value 180
Dividend Yield0.00 %
ROCE0.73 %
ROE4.72 %
Face Value 10.0
PEG Ratio0.00

Data Source: screener.in

Competitors of The India Cements Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 84.9 Cr. 26.037.7/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,30,764 Cr. 11,45312,078/7,94147.0 2,0860.61 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 18,648 Cr. 7881,058/70047.6 3020.32 %8.17 %5.63 % 1.00
The India Cements Ltd 10,826 Cr. 350360/173 1800.00 %0.73 %4.72 % 10.0
Star Cement Ltd 8,627 Cr. 213256/14129.2 67.00.00 %16.4 %11.5 % 1.00
Industry Average30,993.08 Cr1,985.0930.16487.920.53%13.27%17.38%7.41

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1,4721,0451,2351,1611,4181,5141,3271,2811,4861,4371,2641,1441,267
Expenses1,3078811,0931,0461,3551,4751,4031,3411,5331,4281,2601,0961,229
Operating Profit1661651421156340-76-60-47844938
OPM %11%16%12%10%4%3%-6%-5%-3%1%0%4%3%
Other Income2337771011311-106785636
Interest54475151496170625058606065
Depreciation63565856565455555554555858
Profit before tax72654015-34-64-190135-258-97-103-14-49
Tax %39%29%18%13%24%230%36%17%5%24%17%53%-2%
Net Profit46443420-1082-110133-229-87-801-61
EPS in Rs1.621.390.960.52-0.342.58-3.654.30-7.32-2.82-2.580.02-1.95

Last Updated: July 11, 2024, 7:47 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 25, 2024, 11:05 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales5,1575,0825,0574,8795,1585,2675,7705,1864,5114,8585,6085,112
Expenses4,2194,4584,2944,0064,2674,5485,1314,5883,7154,3735,7495,013
Operating Profit937624763873891720639599796486-14199
OPM %18%12%15%18%17%14%11%12%18%10%-3%2%
Other Income23-1352221171426243223224107
Interest369411478440380365350343271198242244
Depreciation324320303291276279265256247226219226
Profit before tax267-241416425290502431185-378-263
Tax %33%0%127%29%37%21%49%-126%33%23%-55%-18%
Net Profit192-239-111915969265120987-125-227
EPS in Rs6.12-7.92-0.113.805.412.110.681.626.672.53-4.09-7.34
Dividend Payout %33%0%0%26%19%38%118%37%15%40%-24%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-224.48%99.58%12000.00%33.61%-56.60%-62.32%96.15%309.80%-58.37%-243.68%-81.60%
Change in YoY Net Profit Growth (%)0.00%324.06%11900.42%-11966.39%-90.22%-5.72%158.47%213.65%-368.18%-185.30%162.08%

Growth

Compounded Sales Growth
10 Years:0%
5 Years:-2%
3 Years:4%
TTM:-9%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:16%
Stock Price CAGR
10 Years:13%
5 Years:30%
3 Years:21%
1 Year:65%
Return on Equity
10 Years:0%
5 Years:-1%
3 Years:-3%
Last Year:-5%

Last Updated: July 24, 2024, 5:02 pm

Balance Sheet

Last Updated: July 10, 2024, 10:39 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital307307307308308308310310310310310310
Reserves3,6843,3643,0734,7424,8674,9614,9365,1885,3885,6375,4665,265
Preference Capital00000012101100
Borrowings3,3163,4983,5023,2963,1003,1973,3443,5823,0413,0912,9452,618
Other Liabilities1,9161,9621,8052,3452,6742,4792,7072,5892,3513,0052,7462,508
Total Liabilities9,2239,1328,68710,69210,95010,94611,29711,67011,09012,04311,46710,701
Fixed Assets5,1995,2104,5997,4887,2607,1467,0727,2067,0657,1016,8036,874
CWIP3561129899134176196235300386313190
Investments446442440357358358371382381408334319
Other Assets3,2213,3683,5502,7483,1983,2653,6593,8473,3444,1474,0163,318
Total Assets9,2239,1328,68710,69210,95010,94611,29711,67011,09012,04311,46710,701

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 7325166459647655563773871,046439-19344
Cash from Investing Activity -544-184-124-220-158-306-202-282-189-250435248
Cash from Financing Activity -190-335-520-757-605-235-180-110-860-183-397-572
Net Cash Flow-2-31-14216-5-6-361919

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow934.00621.00760.00870.00888.00717.00636.00596.00793.00483.00-143.0097.00

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days353337423745475246705450
Inventory Days289281287267306258287312270368258212
Days Payable460459402447522441458490488565438418
Cash Conversion Cycle-137-145-78-138-178-138-124-127-173-127-126-156
Working Capital Days-6-20-3-42-128815286810979
ROCE %9%4%7%8%8%5%5%4%7%3%-4%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters28.42%28.42%28.42%28.42%28.42%28.42%28.42%28.42%28.42%28.42%28.42%28.42%
FIIs13.32%13.22%13.20%13.29%13.42%13.86%13.07%13.15%13.65%13.43%13.58%13.27%
DIIs7.59%6.30%7.91%8.84%7.69%9.50%9.90%9.38%9.43%10.04%8.94%8.47%
Public50.67%52.07%50.47%49.46%50.47%48.24%48.62%49.04%48.52%48.12%49.06%49.83%
No. of Shareholders1,61,6401,65,8841,81,4981,85,6491,95,5511,82,6231,89,4471,95,9741,94,2541,85,7581,96,4262,06,667

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Arbitrage Opportunities Fund1,966,2000.250.91,966,2002024-07-240%
Invesco India Arbitrage Fund1,702,3000.3744.071,966,2002024-07-24-13.42%
Kotak Equity Arbitrage Fund - Regular Plan1,687,8000.1343.71,966,2002024-07-24-14.16%
ICICI Prudential Equity - Arbitrage Fund1,505,1000.2438.971,966,2002024-07-24-23.45%
Nippon India Arbitrage Fund1,264,4000.2732.741,966,2002024-07-24-35.69%
DSP Arbitrage Fund922,2000.6823.881,966,2002024-07-24-53.1%
Axis Arbitrage Fund899,0000.6523.281,966,2002024-07-24-54.28%
Aditya Birla Sun Life Arbitrage Fund812,0000.2721.021,966,2002024-07-24-58.7%
HDFC Arbitrage Fund - Regular Plan759,8000.2219.671,966,2002024-07-24-61.36%
HDFC Arbitrage Fund - Wholesale Plan759,8000.2219.671,966,2002024-07-24-61.36%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-7.32-4.048.987.019.18
Diluted EPS (Rs.)-7.32-4.048.987.019.18
Cash EPS (Rs.)0.311.609.4114.689.98
Book Value[Excl.RevalReserv]/Share (Rs.)180.68173.86180.07184.75179.23
Book Value[Incl.RevalReserv]/Share (Rs.)180.68188.02194.37184.75179.23
Revenue From Operations / Share (Rs.)164.96180.97156.77145.55167.36
PBDIT / Share (Rs.)5.28-3.3216.4126.7320.54
PBIT / Share (Rs.)-1.99-10.409.1318.7712.28
PBT / Share (Rs.)-8.50-12.192.7610.020.76
Net Profit / Share (Rs.)-6.96-5.482.136.731.73
NP After MI And SOA / Share (Rs.)-7.34-4.032.536.671.62
PBDIT Margin (%)3.20-1.8310.4618.3612.27
PBIT Margin (%)-1.20-5.745.8212.897.33
PBT Margin (%)-5.15-6.731.756.880.45
Net Profit Margin (%)-4.22-3.021.354.621.03
NP After MI And SOA Margin (%)-4.44-2.221.614.580.96
Return on Networth / Equity (%)-4.07-2.341.423.650.91
Return on Capital Employeed (%)-0.78-3.723.046.834.32
Return On Assets (%)-2.12-1.090.651.860.42
Long Term Debt / Equity (X)0.250.330.350.350.43
Total Debt / Equity (X)0.460.550.560.430.57
Asset Turnover Ratio (%)0.460.460.410.390.44
Current Ratio (X)0.991.210.930.710.82
Quick Ratio (X)0.770.930.620.480.53
Inventory Turnover Ratio (X)1.381.171.100.981.11
Dividend Payout Ratio (NP) (%)0.00-23.1936.958.4156.40
Dividend Payout Ratio (CP) (%)0.0030.769.533.839.24
Earning Retention Ratio (%)0.00123.1963.0591.5943.60
Cash Earning Retention Ratio (%)0.0069.2490.4796.1790.76
Interest Coverage Ratio (X)0.67-0.422.573.061.85
Interest Coverage Ratio (Post Tax) (X)-0.05-0.471.331.771.20
Enterprise Value (Cr.)9143.978655.129604.907686.096459.47
EV / Net Operating Revenue (X)1.791.541.981.701.25
EV / EBITDA (X)55.84-84.0418.889.2810.15
MarketCap / Net Operating Revenue (X)1.291.021.341.150.63
Retention Ratios (%)0.00123.1963.0491.5843.59
Price / BV (X)1.181.071.180.910.59
Price / Net Operating Revenue (X)1.291.021.341.150.63
EarningsYield-0.03-0.020.010.030.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 129.99

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.

Overvalued: 62.86% compared to the current price 350

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: 82.08

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.

Overvalued: 76.55% compared to the current price 350

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -36.85%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 19.33, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -137.25, which is a positive sign.
  3. The company has higher reserves (4,714.25 cr) compared to borrowings (3,213.67 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (4.75 cr) and profit (30.42 cr) over the years.
  1. The stock has a low average ROCE of 4.67%, 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 The India Cements Ltd:
    1. Net Profit Margin: -4.22%
      • 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: -0.78% (Industry Average ROCE: 13.27%)
      • 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%: -4.07% (Industry Average ROE: 17.38%)
      • 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): -0.05
      • 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: 0.77
      • 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: (Industry average Stock P/E: 30.18)
      • 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: 0.46
      • 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

India Cements Ltd. is a Public Limited Listed company incorporated on 21/02/1946 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L26942TN1946PLC000931 and registration number is 000931. Currently Company is involved in the business activities of Manufacture of clinkers and cement. Company’s Total Operating Revenue is Rs. 4713.11 Cr. and Equity Capital is Rs. 309.90 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
CementDhun Building 827, Anna Salai, Chennai (Madras) Tamil Nadu 600002investor@indiacements.co.in
http://www.indiacements.co.in
Management
NamePosition Held
Mr. N SrinivasanVice Chairman & Mng.Director
Mrs. Rupa GurunathWhole Time Director
Mrs. Chitra SrinivasanDirector
Mr. S Balasubramanian AdityanDirector
Mrs. Lakshmi Aparna SreekumarDirector
Mr. V RanganathanDirector
Mrs. Sandhya RajanDirector
Mr. K SkandanDirector
Mr. Sanjay Shantilal PatelDirector
Mr. S Christopher JebakumarNominee Director
Mr. V ManickamDirector
Mr. Siddhartha MohantyNominee Director
Mr. Y Viswanatha GowdNominee Director

FAQ

What is the latest fair value of The India Cements Ltd?

The latest fair value of The India Cements Ltd is ₹129.99.

What is the Market Cap of The India Cements Ltd?

The Market Cap of The India Cements Ltd is 10,826 Cr..

What is the current Stock Price of The India Cements Ltd as on 25 July 2024?

The current stock price of The India Cements Ltd as on 25 July 2024 is 350.

What is the High / Low of The India Cements Ltd stocks in FY 2024?

In FY 2024, the High / Low of The India Cements Ltd stocks is 360/173.

What is the Stock P/E of The India Cements Ltd?

The Stock P/E of The India Cements Ltd is .

What is the Book Value of The India Cements Ltd?

The Book Value of The India Cements Ltd is 180.

What is the Dividend Yield of The India Cements Ltd?

The Dividend Yield of The India Cements Ltd is 0.00 %.

What is the ROCE of The India Cements Ltd?

The ROCE of The India Cements Ltd is 0.73 %.

What is the ROE of The India Cements Ltd?

The ROE of The India Cements Ltd is 4.72 %.

What is the Face Value of The India Cements Ltd?

The Face Value of The India Cements 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 The India Cements 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