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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of The India Cements Ltd

About the Company - India Cements Ltd

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

India Cements Ltd. Share Price Update

Share PriceValue
Today₹245.00
Previous Day₹248.40

Basic Stock Data of India Cements Ltd

Market Cap 7,473 Cr.
Current Price 241
High / Low277/167
Stock P/E
Book Value 182
Dividend Yield0.00 %
ROCE3.70 %
ROE5.46 %
Face Value 10.0

Data Source: screener.in

Competitors of The India Cements Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sagar Cements Ltd 3,206 Cr. 245305/180105 1210.28 %6.70 %1.27 % 2.00
Ambuja Cements Ltd 1,19,248 Cr. 601615/32436.6 1660.41 %12.6 %10.8 % 2.00
UltraTech Cement Ltd 2,86,638 Cr. 9,92910,526/6,99144.7 1,9450.38 %12.9 %9.63 % 10.0
The Ramco Cements Ltd 20,537 Cr. 8691,058/70148.2 2940.23 %6.55 %5.14 % 1.00
Deccan Cements Ltd 891 Cr. 636668/38820.2 5000.59 %9.00 %7.42 % 5.00
Industry Average86,104.00 Cr2,456.0050.94605.200.38%9.55%6.85%4.00

India Cements Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1,0901,1851,4721,0451,2351,1611,4181,5141,3271,2811,4861,4371,264
Expenses8479621,3078811,0931,0461,3551,4751,4031,3411,5331,4281,260
Operating Profit2432231661651421156340-76-60-4784
OPM %22%19%11%16%12%10%4%3%-6%-5%-3%1%0%
Other Income552337771011311-10678
Interest72705447515149617062505860
Depreciation61626356585656545555555455
Profit before tax1149672654015-34-64-190135-258-97-103
Tax %34%28%39%29%18%13%24%230%36%17%5%24%17%
Net Profit727246443420-1082-110133-229-87-80
EPS in Rs2.232.191.621.390.960.52-0.342.58-3.654.30-7.32-2.82-2.58

India Cements Ltd Quarterly Chart

India Cements Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4,6315,1575,0825,0574,8795,1585,2675,7705,1864,5114,8585,6085,468
Expenses3,6864,2194,4584,2944,0064,2674,5485,1314,5883,7154,3735,7495,562
Operating Profit945937624763873891720639599796486-141-94
OPM %20%18%12%15%18%17%14%11%12%18%10%-3%-2%
Other Income2223-1352221171426243223224221
Interest333369411478440380365350343271198242230
Depreciation286324320303291276279265256247226219220
Profit before tax349267-241416425290502431185-378-323
Tax %25%33%-0%127%29%37%21%49%-126%33%23%55%
Net Profit272192-239-111915969265120987-125-263
EPS in Rs8.846.12-7.92-0.113.805.412.110.681.626.672.53-4.09-8.42
Dividend Payout %23%33%0%0%26%19%38%118%37%15%40%-24%

India Cements Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-29.41%-224.48%99.58%12000.00%33.61%-56.60%-62.32%96.15%309.80%-58.37%-243.68%
Change in YoY Net Profit Growth (%)0.00%-195.07%324.06%11900.42%-11966.39%-90.22%-5.72%158.47%213.65%-368.18%-185.30%

India Cements Ltd Growth

Compounded Sales Growth
10 Years:1%
5 Years:1%
3 Years:3%
TTM:-4%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-64%
Stock Price CAGR
10 Years:15%
5 Years:20%
3 Years:13%
1 Year:25%
Return on Equity
10 Years:1%
5 Years:0%
3 Years:0%
Last Year:-5%

India Cements Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital307307307307308308308310310310310310310
Reserves3,6313,6843,3643,0734,7424,8674,9614,9365,1885,3885,6375,4665,324
Preference Capital000000012101100
Borrowings3,0353,3163,4983,5023,2963,1003,1973,3443,5823,0413,0912,9452,832
Other Liabilities1,6971,9161,9621,8052,3452,6742,4792,7072,5892,3513,0052,7462,772
Total Liabilities8,6699,2239,1328,68710,69210,95010,94611,29711,67011,09012,04311,46711,238
Fixed Assets5,2075,1995,2104,5997,4887,2607,1467,0727,2067,0657,1016,8036,716
CWIP1703561129899134176196235300386313371
Investments422446442440357358358371382381408334325
Other Assets2,8703,2213,3683,5502,7483,1983,2653,6593,8473,3444,1474,0163,827
Total Assets8,6699,2239,1328,68710,69210,95010,94611,29711,67011,09012,04311,46711,238

India Cements Ltd Reserves and Borrowings Chart

India Cements Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 9427325166459647655563773871,046439-19
Cash from Investing Activity -693-544-184-124-220-158-306-202-282-189-250435
Cash from Financing Activity -288-190-335-520-757-605-235-180-110-860-183-397
Net Cash Flow-39-2-31-14216-5-6-3619

India Cements Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days193533374237454752467054
Inventory Days302289281287267306258287312270368258
Days Payable407460459402447522441458490488565438
Cash Conversion Cycle-85-137-145-78-138-178-138-124-127-173-127-126
Working Capital Days-24-6-20-3-42-1288152868109
ROCE %10%9%4%7%8%8%5%5%4%7%3%-4%

India Cements Ltd Financial Efficiency Indicators Chart

India Cements Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters28.42%28.42%28.42%28.42%28.42%28.42%28.42%28.42%28.42%28.42%28.42%28.42%
FIIs13.06%13.32%13.22%13.20%13.29%13.42%13.86%13.07%13.15%13.65%13.43%13.58%
DIIs9.00%7.59%6.30%7.91%8.84%7.69%9.50%9.90%9.38%9.43%10.04%8.94%
Public49.53%50.67%52.07%50.47%49.46%50.47%48.24%48.62%49.04%48.52%48.12%49.06%
No. of Shareholders1,54,8881,61,6401,65,8841,81,4981,85,6491,95,5511,82,6231,89,4471,95,9741,94,2541,85,7581,96,426

India Cements Ltd Shareholding Pattern Chart

No. of India Cements Ltd Shareholders

India Cements Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Arbitrage Opportunities Fund19662000.250.9
Invesco India Arbitrage Fund17023000.3744.07
Kotak Equity Arbitrage Fund - Regular Plan16878000.1343.7
ICICI Prudential Equity - Arbitrage Fund15051000.2438.97
Nippon India Arbitrage Fund12644000.2732.74
DSP Arbitrage Fund9222000.6823.88
Axis Arbitrage Fund8990000.6523.28
Aditya Birla Sun Life Arbitrage Fund8120000.2721.02
HDFC Arbitrage Fund - Regular Plan7598000.2219.67
HDFC Arbitrage Fund - Wholesale Plan7598000.2219.67

India Cements Ltd ROCE Trend

India Cements Ltd EPS Trend

India Cements Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-4.048.987.019.180.28
Diluted EPS (Rs.)-4.048.987.019.180.28
Cash EPS (Rs.)1.609.4114.689.989.36
Book Value[Excl.RevalReserv]/Share (Rs.)173.86180.07184.75179.23169.80
Book Value[Incl.RevalReserv]/Share (Rs.)188.02194.37184.75179.23169.80
Revenue From Operations / Share (Rs.)180.97156.77145.55167.36186.20
PBDIT / Share (Rs.)-3.3216.4126.7320.5421.46
PBIT / Share (Rs.)-10.409.1318.7712.2812.91
PBT / Share (Rs.)-12.192.7610.020.761.61
Net Profit / Share (Rs.)-5.482.136.731.730.81
NP After MI And SOA / Share (Rs.)-4.032.536.671.620.67
PBDIT Margin (%)-1.8310.4618.3612.2711.52
PBIT Margin (%)-5.745.8212.897.336.93
PBT Margin (%)-6.731.756.880.450.86
Net Profit Margin (%)-3.021.354.621.030.43
NP After MI And SOA Margin (%)-2.221.614.580.960.36
Return on Networth / Equity (%)-2.341.423.650.910.40
Return on Capital Employeed (%)-3.723.046.834.324.55
Return On Assets (%)-1.090.651.860.420.18
Long Term Debt / Equity (X)0.330.350.350.430.51
Total Debt / Equity (X)0.550.560.430.570.58
Asset Turnover Ratio (%)0.460.410.390.440.50
Current Ratio (X)1.210.930.710.820.92
Quick Ratio (X)0.930.620.480.530.59
Inventory Turnover Ratio (X)1.171.100.981.111.38
Dividend Payout Ratio (NP) (%)-23.1936.958.4156.40151.46
Dividend Payout Ratio (CP) (%)30.769.533.839.2411.16
Earning Retention Ratio (%)123.1963.0591.5943.60-51.46
Cash Earning Retention Ratio (%)69.2490.4796.1790.7688.84
Interest Coverage Ratio (X)-0.422.573.061.851.90
Interest Coverage Ratio (Post Tax) (X)-0.471.331.771.201.07
Enterprise Value (Cr.)8655.129604.907686.096459.476406.18
EV / Net Operating Revenue (X)1.541.981.701.251.11
EV / EBITDA (X)-84.0418.889.2810.159.63
MarketCap / Net Operating Revenue (X)1.021.341.150.630.58
Retention Ratios (%)123.1963.0491.5843.59-51.46
Price / BV (X)1.071.180.910.590.64
Price / Net Operating Revenue (X)1.021.341.150.630.58
EarningsYield-0.020.010.030.010.01

India Cements Ltd Profitability Ratios (%)

India Cements Ltd Liquidity Ratios

India Cements Ltd Liquidity Ratios (%)

India Cements Ltd Interest Coverage Ratios (X)

India Cements Ltd Valuation Ratios

Fair Value / Intrinsic Value of India Cements Ltd

Fair Value: ₹152.04

The stock is overvalued by 36.91% compared to the current price ₹241

*Investments are subject to market risks

Strength and Weakness of India Cements Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 10.75, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -131.33, which is a positive sign.
  3. The company has higher reserves (4,635.46 cr) compared to borrowings (2.54 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (4.69 cr) and profit (50.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 8.54 and average Dividend Yield of 5.45%.
  2. The stock has a low average ROCE of 5.50%, which may not be favorable.

Should I Buy India Cements Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in The India Cements Ltd:
    1. Net Profit Margin: -3.02%
      • 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: -3.72% (Industry Average ROCE: 9.05%)
      • 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): -0.47
      • 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: 0.93
      • 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 of N/A (Industry average Stock P/E: 34.04)
      • 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: 0.55
      • 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 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