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Gujarat Sidhee Cement Ltd. Stock Analysis

Small Cap
Evaluated by 307 users | BSE: 518029 | NSE: GSCLCEMENT |
Cement & Construction Materials
Incorporated in 1973, Gujarat Sidhee Cement (GSCL) was originally set up as a joint venture between the Gujarat Industrial Investment Corporation (GIIC) and the Mehta Group. However due to differences between the two promoters GIIC disinvested part of its holding in GSCL in favour of the...

Analysis of Financial Track Record

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.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 46.8%-2.67%7.99%28.05%0.48%2.64%-1.91%-9.57%8.64%-2.1%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 431350439446410484469434536563
Y-o-Y Gr. Rt.--18.7%25.3%1.5%-8.1%18.1%-3.1%-7.4%23.5%5%
Adjusted EPS (Rs.) 2.62-0.340.479.71-0.370.16-0.81-3.413.76-1.57
Y-o-Y Gr. Rt.--113%NA1966%-103.8%NA-606.3%NANA-141.8%
Book Value per Share (Rs.) 4.766.927.339.238.4523.8220.5840.1544.0243.08
Adjusted Net Profit 37.8-56.935.1-1.41.4-7-29.432.4-13.6
Net Op. Cash Flow (Rs. Cr.) 56.624.834.549.28.728.5120.836.8-2.7
Debt to Cash Flow from Ops 0.320.290.250.062.380.6819.551.371.26-19.81
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Gujarat Sidhee Cement Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3%6.6%6.3%5%
Adjusted EPS -194.5%NANA-141.8%
Book Value per Share 27.72.327.9-2.1
Share Price 12.9% 2.5% -9% 46.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 76.11-4.886.6528.39-0.940.87-4.01-11.248.93-3.6
Operating Profit Margin (%) 14.62-1.244.0611.511.232.08-0.96-6.416.16-2.01
Net Profit Margin (%) 8.79-1.421.567.88-0.330.28-1.48-6.776.04-2.42
Debt to Equity 0.270.070.080.020.150.110.110.080.120.15
Working Capital Days 5110683891088982765755
Cash Conversion Cycle -513-1-13-5-32-11-20-9
Entity Percentage Holding
Promoters 70.36%
Institutions 0.15%
Non-Institutions 29.48%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Guj. Sidhee Cement's performance infers:

Guj. Sidhee Cement earnings have grown by 0%, whereas share price has appreciated 2.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Guj. Sidhee Cement share prices over the last 10 years. Here is what we found out:

Guj. Sidhee Cement share price has appreciated 5.7% annually over the past ten years.

Incorporated in 1973, Gujarat Sidhee Cement (GSCL) was originally set up as a joint venture between the Gujarat Industrial Investment Corporation (GIIC) and the Mehta Group. However due to differences between the two promoters GIIC disinvested part of its holding in GSCL in favour of the Mehta's. The Mehta group with 38% equity stake in GSCL now exercises control over the company.

GSCL's plant is located at Sidheegram in Junagadh district of Gujarat.  The plant uses latest Dry Process

Incorporated in 1973, Gujarat Sidhee Cement (GSCL) was originally set up as a joint venture between the Gujarat Industrial Investment Corporation (GIIC) and the Mehta Group. However due to differences between the two promoters GIIC disinvested part of its holding in GSCL in favour of the Mehta's. The Mehta group with 38% equity stake in GSCL now exercises control over the company.

GSCL's plant is located at Sidheegram in Junagadh district of Gujarat.  The plant uses latest Dry Process Pre-calcinations 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.

Because of its proximity to the Porbandar and Pipavav ports, it has competitive access to the large export markets in the Middle East countries, Sri Lanka and Bangladesh by the economical sea route.

Gujarat Sidhee Cement markets cement under the brand name Sidhee. GSCL product range includes Ordinary Portland Cement (OPC) 53 Grade and 43 Grade, Pozzolana Portland Cement (PPC). It’s products comes with long lasting strength and are suited for all applications that require high compressive strengths.

GSCL resorted to right’s issue in January 1990 and a second right issue in July 1994 to raise its capacity to 1.2 million tonnes per annum and for paying off loans.

Product Range:

The company manufactures cements in various grades as below:

  • OPC 43 Grade
  • OPC 53 Grade
  • PPC

Group Companies:

  • Pranay Holdings
  • Prachit Holdings
  • Ria Holdings
  • Reeti Investments
  • Samets Exports
  • Sumaraj Holdings
  • Sunnidhi Trading
  • Villa Trading
  • The Mehta International
  • Euro India Investments
  • Exchange Management
  • Hopgood Invesstments
  • Shree Anandeya Investments
  • Saurashtra Cement
  • Industrial Construction
  • Sampson
  • Beverley Investment
  • Monza
  • Treasurer's Trading
  • The Arj Investments

Achievements:

GSCL has got national and international recognition:

  • 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.
  • The company has also 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 and Aforestation etc.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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