Saurashtra Cement Ltd Stock Analysis

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

BSE Share Price Aug 08, 18:01
59.10 -0.20 (-0.34%)

DeciZen - Make an Informed Decision on Saurashtra Cement

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Fair

3. Price Trend

Saurashtra Cement Price Chart

P/E Ratio (SA) :
180.43
Market Cap :
417.1 Cr.
52-wk low :
46.9
52-wk high :
138.9
Bole Toh?

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 good 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 majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 44.4%11.2%20.7%15%4.9%15.8%-0.9%15.6%14.6%0.8%-
Value Creation Index 2.2-0.20.50.1-0.70.1-1.10.10.0NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 538531563530470574622608674761761
YoY Gr. Rt. %--1.2%5.9%-5.9%-11.2%22%8.4%-2.2%10.8%13%-
Adj EPS 13.74.59.16.128.9-1.19.910.20.10.3
YoY Gr. Rt. %--67.3%102.2%-32.5%-67.5%347.7%-111.8%NA3.8%-98.8%-
BVPS (₹) 27.431.544.74452.260.15863.87473.973.9
Adj Net Profit 70.32346.536.913.861.6-7.368.671.50.92
Cash Flow from Ops. 1318379.976.434.249.314.362.6134-8.5-
Debt/CF from Ops. 1.41.40.20.30.50.42.30.40.2-7.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 3.9%10.1%7%13%
Adj EPS -40.9%-43%NA-98.8%
BVPS 11.67.28.4-0.1
Share Price 11.7% -2.4% 18% -54.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 120.414.322.814.64.415.9-1.815.914.70.20.5
Op. Profit Mgn % 21.211.615.9126.48.80.818.2173.13.1
Net Profit Mgn % 13.14.38.372.910.8-1.211.310.60.10.3
Debt to Equity 1.20.70.10.10.100.10.100.10
Working Cap Days 66707587978876918673108
Cash Conv. Cycle 142119201391422282919

Recent Performance Summary

Sales growth is good in last 4 quarters at 23.96%

Return on Equity has declined versus last 3 years average to 0.40%

Sales growth has been subdued in last 3 years 6.99%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - Saurashtra Cement Ltd.

Standalone Consolidated
TTM EPS (₹) 0.3 0.6
TTM Sales (₹ Cr.) 761 761
BVPS (₹.) 73.9 74
Reserves (₹ Cr.) 449 450
P/BV 0.80 0.80
PE 180.43 105.13
From the Market
52 Week Low / High (₹) 46.90 / 138.90
All Time Low / High (₹) 6.00 / 4600.00
Market Cap (₹ Cr.) 417
Equity (₹ Cr.) 70.3
Face Value (₹) 10
Industry PE 31.1

Management X-Ray of Saurashtra Cement :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *37.8437.8437.8437.8437.8437.8419.5819.5819.5819.62
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of Saurashtra Cement

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

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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