Check Before You Invest : Barak Valley Cements Ltd

Snapshot

Q.1 Which industry/sub-sector does Barak Valley Cements Ltd belong to?

Barak Valley Cements Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q.2 Is Barak Valley Cements Ltd a good quality company?

Barak Valley Cements Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Barak Valley Cements Ltd undervalued or overvalued?

Barak Valley Cements Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Barak Valley Cements Ltd a good buy now?

Barak Valley Cements Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Barak Valley Cements Ltd?

Barak Valley Cements Ltd revenue growth is -10.8% for FY-2025, which is below its 5-year CAGR of 5.96%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Barak Valley Cements Ltd?

Barak Valley Cements Ltd Return on capital employed is 11.89% for FY-2025, which is above its 5-year historical median of 10.91%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Barak Valley Cements Ltd?

Barak Valley Cements Ltd Return on Asset is 4.02%, which is above its 5-year historical median of 2.87%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Barak Valley Cements Ltd?

Barak Valley Cements Ltd Return on equity is 7.53% for FY-2025, which is above its 5-year historical median of 6.41%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Barak Valley Cements Ltd?

Barak Valley Cements Ltd Cash conversion cycle is 54 days, above its 5-year historical median of 45 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.03	0.86
ROE	7.53	6.41
ROCE	11.89	10.91
Cash Conversion Cycle	54 days	45 days

Q.6 Gross Profit margin of Barak Valley Cements Ltd?

Barak Valley Cements Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.5% for FY-2025, which is in line with its 5-year median of 8.5%, indicating stable margins.

Q.7 Operating Profit Margin of Barak Valley Cements Ltd?

Barak Valley Cements Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.94% for FY-2025, which is in line with its 5-year median of 11.01% indicating stable margins.

Q.8 Net Profit Margin of Barak Valley Cements Ltd?

Barak Valley Cements Ltd Net Profit Margin is 3.9% for FY-2025, is above with its 5-year median of 3.33%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.5	8.5
Operating Profit Margin	10.94	11.01
Net Profit Margin	3.9	3.33

Q.9 Debt to Equity ratio of Barak Valley Cements Ltd?

Barak Valley Cements Ltd Debt-to-Equity ratio is 0.30, 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 Barak Valley Cements Ltd?

Barak Valley Cements Ltd Debt to cash flow from operations is 2.62, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Barak Valley Cements Ltd?

Promoters hold 54.12% of the Barak Valley Cements Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Barak Valley Cements Ltd vs industry peers?

Barak Valley Cements Ltd revenue CAGR is 5.96%, compared to the industry median CAGR of 6.22%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-10.8	6.2
Gross Profit Growth	-10	NAN
Operating Profit Growth	-8	-3.8
Net Profit Growth	-20	-9.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.03	0.82
ROE	7.53	7.62
ROCE	11.89	9.4
Cash Conversion Cycle (days)	54.26	23

Valuation & price assessment

Q.1 Stock return of Barak Valley Cements Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 11.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	11.9%	19.9%	6.3%	34.4%

Q.3 Valuation ratios of Barak Valley 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	18.31	12.77	22.85
Price to Book	0.89	0.81	1.92
Price to Sales	0.48	0.42	1.40
EV to EBITDA	7.69	6.33	11.62

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