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Check Before You Invest : Shree Digvijay Cement Company Ltd

BSE: 502180 NSE: SHREDIGCEM ISIN: INE232A01011
  |   Sector:  Construction & Infrastructure   |   Industry:  Cement & Construction Materials

Snapshot

Q.1 Which industry/sub-sector does Shree Digvijay Cement Company Ltd belong to?
Shree Digvijay Cement Company Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.
Q.2 Is Shree Digvijay Cement Company Ltd a good quality company?
Shree Digvijay Cement Company Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Shree Digvijay Cement Company Ltd undervalued or overvalued?
Shree Digvijay Cement Company Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 41.76 20.40
Price to Book 2.86 3.47
Price to Sales 1.39 1.68
EV to EBITDA 20.81 9.89
Q.4 Is Shree Digvijay Cement Company Ltd a good buy now?
Shree Digvijay Cement Company 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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Shree Digvijay Cement Company Ltd?
Shree Digvijay Cement Company Ltd revenue growth is -8.4% for FY-2025, which is below its 5-year CAGR of 9.07%, indicating slower growth.

Q.2 Gross Profit margin of Shree Digvijay Cement Company Ltd?
Shree Digvijay Cement Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.4% for FY-2025, which is below its 5-year median of 18.5%, indicating decreasing margins.

Q.3 Operating Profit Margin of Shree Digvijay Cement Company Ltd?
Shree Digvijay Cement Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.9% for FY-2025, which is below its 5-year median of 18.42% indicating decreasing margins.

Q.4 Net Profit Margin of Shree Digvijay Cement Company Ltd?
Shree Digvijay Cement Company Ltd Net Profit Margin is 3.48% for FY-2025, is below its 5-year median of 8.79%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 8.4 18.5
Operating Profit Margin (%) 7.9 18.42
Net Profit Margin (%) 3.48 8.79

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Shree Digvijay Cement Company Ltd?
Shree Digvijay Cement Company Ltd Return on Asset is 4.1%, which is below its 5-year historical median of 12.41%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Shree Digvijay Cement Company Ltd?
Shree Digvijay Cement Company Ltd Return on capital employed is 8.73% for FY-2025, which is below its 5-year historical median of 28.77%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Shree Digvijay Cement Company Ltd?
Shree Digvijay Cement Company Ltd Return on equity is 6.77% for FY-2025, which is below its 5-year historical median of 18.17%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Shree Digvijay Cement Company Ltd?
Shree Digvijay Cement Company Ltd Cash conversion cycle is 17 days, below its 5-year historical median of 25 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.25 1.43
ROE (%) 6.77 18.17
ROCE (%) 8.73 28.77
Cash Conversion Cycle 17 days 25 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Shree Digvijay Cement Company Ltd?
Shree Digvijay Cement Company Ltd Debt-to-Equity ratio is 0.30, which is lower the industry average of 0.36, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Shree Digvijay Cement Company Ltd?
Shree Digvijay Cement Company Ltd Debt to cash flow from operations is 0.81, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Shree Digvijay Cement Company Ltd?

Q.1 Promoter shareholding and pledge status of Shree Digvijay Cement Company Ltd?
Promoters hold 59.20% of the Shree Digvijay Cement Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Shree Digvijay Cement Company Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Shree Digvijay Cement Company Ltd vs industry peers?
Shree Digvijay Cement Company Ltd revenue CAGR is 9.07%, compared to the industry median CAGR of 5.89%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -8.4 5.9
Gross Profit Growth (%) -58.2 -0.6
Operating Profit Growth (%) -61 -2.5
Net Profit Growth (%) -71.6 -8.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.25 0.82
ROE (%) 6.77 7.28
ROCE (%) 8.73 9.38
Cash Conversion Cycle (days) 17.01 17

Valuation & price assessment

Q.1 Stock return of Shree Digvijay Cement Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
14.8% -1.9% -5.8% -15%
Q.2 Valuation ratios of Shree Digvijay Cement Company Ltd vs historical?
The current P/E ratio of 41.76 is higher than its historical median of 20.40, indicating that the stock is trading above its historical average valuation.
Q.3 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 41.76 20.40 22.88
Price to Book 2.86 3.47 1.92
Price to Sales 1.39 1.68 1.41
EV to EBITDA 20.81 9.89 11.61

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