Saurashtra Cement Ltd - Stock Valuation and Financial Performance

BSE: 502175 | NSE: SAURASHCEM | Cement & Construction Materials | Small Cap

Saurashtra Cement Share Price

107 3.10 2.98%
as on 28-Mar'24 13:50

DeciZen - make an informed investing decision on Saurashtra Cement

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Saurashtra Cement stock performance -

mw4me loader
P/E Ratio (SA):
28.97
Market Cap:
1,152.5 Cr.
52-wk low:
48
52-wk high:
125

Is Saurashtra Cement Ltd an attractive stock to invest in?

1. Is Saurashtra Cement Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Saurashtra Cement Ltd is a average quality company.

2. Is Saurashtra Cement Ltd undervalued or overvalued?

The key valuation ratios of Saurashtra Cement Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Saurashtra Cement Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Saurashtra Cement Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Saurashtra Cement:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Saurashtra Cement Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 11.2%20.7%15%4.9%15.8%-0.9%15.6%14.6%3.3%-1.6%-
Value Creation
Index
-0.20.50.1-0.70.1-1.10.10.0-0.8-1.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5315635304705746226086741,4511,6451,739
Sales YoY Gr.-5.9%-5.9%-11.2%22%8.4%-2.2%10.8%115.4%13.4%-
Adj EPS 4.59.16.128.9-1.19.910.23.3-43.6
YoY Gr.-102.2%-32.5%-67.5%347.7%-111.8%NA3.8%-67.5%-219.5%-
BVPS (₹) 31.544.74452.260.15863.874149.2145.381.8
Adj Net
Profit
2346.536.913.861.6-7.368.671.518.9-22.640
Cash Flow from Ops. 8379.976.434.249.314.362.6134-8.421.3-
Debt/CF from Ops. 1.40.20.30.50.42.30.40.2-12.23-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13.4%23.5%39.3%13.4%
Adj EPS -198.7%-185.1%-173.9%-219.5%
BVPS18.5%19.3%31.6%-2.6%
Share Price 20.3% 18.9% 23.4% 119%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
14.322.814.64.415.9-1.815.914.72.7-2.53.2
Op. Profit
Mgn %
11.615.9126.48.80.818.2174.40.46.6
Net Profit
Mgn %
4.38.372.910.8-1.211.310.61.3-1.42.3
Debt to
Equity
0.70.10.10.100.10.100.10.1-
Working Cap
Days
7075879788769186547543
Cash Conv.
Cycle
21192013914222825333

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 39.34%

Return on Equity has declined versus last 3 years average to 3.20%

Net Profit has been subdued in last 3 years -173.88%

Sales growth is not so good in last 4 quarters at 8.88%

Latest Financials - Saurashtra Cement Ltd.

Standalone Consolidated
TTM EPS (₹) 3.6 3.6
TTM Sales (₹ Cr.) 1,739 1,739
BVPS (₹.) 81.8 81.9
Reserves (₹ Cr.) 796 797
P/BV 1.27 1.27
PE 28.97 28.94
From the Market
52 Week Low / High (₹) 48.02 / 125.00
All Time Low / High (₹) 6.00 / 4600.00
Market Cap (₹ Cr.) 1,153
Equity (₹ Cr.) 110.9
Face Value (₹) 10
Industry PE 40.8

Management X-Ray of Saurashtra Cement:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *19.5819.5819.5819.6219.6119.610.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Saurashtra Cement

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales5315635304705746226086741,4511,645
Operating Expenses 4734744674415246174995591,3871,640
Manufacturing Costs256269246250269332264272831982
Material Costs63384325304034164146
Employee Cost 30353939414945459498
Other Costs 124132139127184195187200399414
Operating Profit 58896329505109115646
Operating Profit Margin (%) 10.9%15.8%11.9%6.3%8.7%0.8%18.0%17.0%4.4%0.3%
Other Income 5813111888121613
Interest 161354355499
Depreciation 26351315181820203339
Exceptional Items 03110003-160-10
Profit Before Tax 2179692146-77710336-29
Tax 012257-16-2213014-7
Profit After Tax 2168441463-5577221-22
PAT Margin (%) 3.9%12.0%8.3%3.0%10.9%-0.8%9.3%10.7%1.5%-1.3%
Adjusted EPS (₹)4.013.25.62.09.0-0.78.110.43.8-3.9
Dividend Payout Ratio (%)0%0%18%49%11%0%21%17%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 171238267361416402444517845824
Share Capital 58586069696970705757
Reserves 112180207292346333374447789767
Minority Interest0000000000
Debt4441917163025179359
Long Term Debt380123465115
Short Term Debt641815132618138254
Trade Payables354627515263553784107
Others Liabilities 170129146162119100156172374366
Total Liabilities 4184184595906035966787441,3961,357

Fixed Assets

Gross Block5485535876496757067217321,4361,474
Accumulated Depreciation360375386332341358370386623643
Net Fixed Assets189178201317334349351345813831
CWIP 59534048433738617851
Investments 1919199654800
Inventories57784858567810056186180
Trade Receivables16191415191634295978
Cash Equivalents 40216470818010218820977
Others Assets385073736330505750139
Total Assets 4184184595906035966787441,3961,357

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 83807634491463134-821
PBT 2179692146-77710336-29
Adjustment 4313-412102139173138
Changes in Working Capital 267241124-3930-6516
Tax Paid -6-19-12-10-9-3-14-16-11-3
Cash Flow From Investing Activity -218-24-25-37-15-38-121-3032
Capex -716-24-31-31-31-23-39-45-38
Net Investments 0000-123-21-835860
Others 521551351-4210
Cash Flow From Financing Activity -82-100-65-7-123-23-1731-49
Net Proceeds from Shares 0099000020
Net Proceeds from Borrowing -59-105-71123-2-8-12
Interest Paid -16-13-5-3-3-4-3-3-8-8
Dividend Paid 00-12-7-7-7-12-6-40
Others -818-51-7-311-11-750-30
Net Cash Flow -1-2-122021-4-75
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)13.6934.6717.744.4816.1-1.1913.3815.073.15-2.66
ROCE (%)12.1134.6327.637.5212.29-0.4517.8320.885.8-2.06
Asset Turnover Ratio1.371.511.351.010.991.060.980.971.391.23
PAT to CFO Conversion(x)3.951.181.732.430.78N/A1.111.86-0.38N/A
Working Capital Days
Receivable Days9101010101015171115
Inventory Days38393937353952413040
Payable Days2033883105776355248,180407345240

Saurashtra Cement Ltd Stock News

Saurashtra Cement Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Saurashtra Cement on 28-Mar-2024 13:50 is ₹107.0.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 13:50 the market cap of Saurashtra Cement stood at ₹1,152.5.
The latest P/E ratio of Saurashtra Cement as of 28-Mar-2024 13:50 is 28.97.
The latest P/B ratio of Saurashtra Cement as of 28-Mar-2024 13:50 is 1.27.
The 52-week high of Saurashtra Cement is ₹125.0 and the 52-week low is ₹48.02.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Saurashtra Cement is ₹1,739 ( Cr.) .

About Saurashtra Cement Ltd

Saurashtra Cement (SCL) is the flagship company of the Mehta Group, formed in 1956. SCL is one of the leading players in the Indian cement industry, manufacturing Ordinary Portland Cement (OPC) and Pozzolana Portland Cement (PPC). It also added Sulphate Resistant Cement (SRC) and Portland Slag Cement (PSC) to its product range. SCL markets cement under the brand name 'Hathi Cement'. The product is marketed in 50 kg bag, packed in HDPE/PP or paper bags. The product is identified in the market by a special greenish tinge to give superior finish on external surface. Keeping in tune with the recent market trends, the company has launched cement packed in 1 kg, 2 kg, 5 kg and 10 kg bags in the retail cement market under the brand name ‘Chhotu Hathi’.  SCL's plant at Ranvav in Gujarat state has a cement manufacturing capacity of 1.4 MTPA. The plant at Ranvav is a modern energy efficient dry process based plant comparable to international standards and makes use of latest machinery sourced from reputed international companies. The plant offers locational advantages because of its proximity to the Porbandar and Veraval/Okha ports. SCL thus has competitive access to the large export markets in the Middle East countries, Sri Lanka and Bangladesh by the economical sea route.  SCL's modernization scheme implemented in the past has paid the results. State-of-the-art equipment and control systems installed has led to capacity enhancement, reduction in power and fuel consumption and improvement in quality and emission levels.

Product range of the company includes:

  • Ordinary Portland Cement (OPC)
  • Pozzolana Portland Cement (PPC)
  • Sulphate Resistant Cement (SRC)
  • Portland Slag Cement (PSC)

Subsidiary:

Gujarat Sidhee Cement Limited (GSCL) was originally set up as a joint venture between the Gujarat Industrial Investment Corporation and The Mehta Group. GSCL’s plant uses the latest Dry Process Pre-calcination technology comparable to international standards. The state-of-the art plant makes use of machinery which is sourced from reputed international companies. The plant, operating at over 100% capacity, is also one of India's cost effective cement producers.

Awards & Achievements:

  • ISO 9002 Certification from RWTUV, Germany for Quality Systems.
  • ISO 14001 Certification from RWTUV, Germany for Environmental Management System.
  • National Productivity Award for Best Production Performance 1995-96.
  • National Productivity Award for Second Best Productivity in 1994-95, 1995-96 & 1996-97.
  • CAPEXIL Award for Export Recognition, 1995
  • Indira Gandhi National Memorial Award for Excellence in Indian Industry.
  • In addition to the above, the Company has received about 50 Awards from Indian Bureau of Mines and Director General of Mines Safety for Mining in relation to Pollution Control, Soil Management, Safety, Operations & Aforestation etc.
  • SCL is an ISO 9001:2000 company and recognized Export House in the country.
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