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Check Before You Invest : The India Cements Ltd

BSE: 530005 NSE: INDIACEM ISIN: INE383A01012
  |   Sector:  Construction & Infrastructure   |   Industry:  Cement & Construction Materials

Snapshot

Q.1 Which industry/sub-sector does The India Cements Ltd belong to?
The India Cements Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.
Q.2 Is The India Cements Ltd a good quality company?
The India Cements Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.
Q.3 Is The India Cements Ltd undervalued or overvalued?
The India Cements Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is The India Cements Ltd a good buy now?
The India Cements Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of The India Cements Ltd?
The India Cements Ltd revenue growth is -17.3% for FY-2025, which is below its 5-year CAGR of -4.16%, indicating slower growth.
Q.2 Return on capital employed (ROCE) of The India Cements Ltd?
The India Cements Ltd Return on capital employed is -7.93% for FY-2025, which is below its 5-year historical median of -0.18%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.
Q.3 Return on Asset of The India Cements Ltd?
The India Cements Ltd Return on Asset is -5.54%, which is below its 5-year historical median of -1.64%, indicating deteriorated asset utilization efficiency.
Q.4 Return on Equity (ROE) of The India Cements Ltd?
The India Cements Ltd Return on equity is -14.38% for FY-2025, which is below its 5-year historical median of -3.58%, indicating the business is making worse use of its shareholders capital.
Q.5 Cash conversion cycle of The India Cements Ltd?
The India Cements Ltd Cash conversion cycle is 26 days, in line with its 5-year historical median of 27 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover 0.39 0.42
ROE -14.38 -3.58
ROCE -7.93 -0.18
Cash Conversion Cycle 26 days 27 days
Q.6 Gross Profit margin of The India Cements Ltd?
The India Cements Ltd Gross profit margin which is the profit after deduction of direct costs, is -12.9% for FY-2025, which is below its 5-year median of -1.4%, indicating decreasing margins.
Q.7 Operating Profit Margin of The India Cements Ltd?
The India Cements Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -8.5% for FY-2025, which is below its 5-year median of 2.3% indicating decreasing margins.
Q.8 Net Profit Margin of The India Cements Ltd?
The India Cements Ltd Net Profit Margin is -16.33% for FY-2025, is below with its 5-year median of -3.5%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin -12.9 -1.4
Operating Profit Margin -8.5 2.3
Net Profit Margin -16.33 -3.5
Q.9 Debt to Equity ratio of The India Cements Ltd?
The India Cements Ltd Debt-to-Equity ratio is 0.27, which is lower with the industry average of 0.39, indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of The India Cements Ltd?
The India Cements Ltd Debt to cash flow from operations is 19.25, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of The India Cements Ltd?
Promoters hold 75.00% of the The India Cements Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of The India Cements Ltd vs industry peers?
The India Cements Ltd revenue CAGR is -4.16%, compared to the industry median CAGR of 6.22%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth -17.3 6.2
Gross Profit Growth 0 NAN
Operating Profit Growth -451.4 -3.8
Net Profit Growth 0 -9.4
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 0.39 0.82
ROE -14.38 7.62
ROCE -7.93 9.4
Cash Conversion Cycle (days) 25.96 23

Valuation & price assessment

Q.1 Stock return of The India Cements Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 15.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
15.8% 18.8% 28.4% 29.4%
Q.3 Valuation ratios of The India Cements Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 187.83 38.89 22.85
Price to Book 1.22 1.28 1.92
Price to Sales 2.74 1.40 1.40
EV to EBITDA 27.39 12.80 11.62

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