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Saurashtra Cement Ltd Stock Analysis

Small Cap
Evaluated by 373 users | BSE: 502175 | NSE: SAURASHCEM |
Cement & Construction Materials
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...

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed -11.94%9.82%44.43%11.17%20.7%14.99%4.92%15.77%-0.91%15.58%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 393439538531563530470574622608
Y-o-Y Gr. Rt.-11.7%22.6%-1.2%5.9%-5.9%-11.2%22%8.4%-2.2%
Adjusted EPS (Rs.) -11.2-3.7413.734.499.086.131.998.91-1.059.87
Y-o-Y Gr. Rt.-NANA-67.3%102.2%-32.5%-67.5%347.7%-111.8%NA
Book Value per Share (Rs.) -4.78-8.5127.4431.4744.7143.9852.1960.0658.0463.81
Adjusted Net Profit -57.3-19.270.32346.536.913.861.6-7.368.6
Net Op. Cash Flow (Rs. Cr.) 3228.41318379.976.434.249.314.362.4
Debt to Cash Flow from Ops 5.154.51.361.430.150.250.50.352.250.44
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.
Saurashtra Cement Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5%1.6%9%-2.2%
Adjusted EPS NA1.7%70.5%NA
Book Value per Share 07.46.99.9
Share Price 14.9% -7.1% -16.7% 25.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -326.184.27120.4114.3322.7514.64.415.85-1.7715.94
Operating Profit Margin (%) 5.119.7621.1811.5615.9311.986.418.80.7918.15
Net Profit Margin (%) -14.6-4.3713.064.328.266.962.9410.75-1.1811.29
Debt to Equity -9.36-3.481.20.710.050.070.050.040.080.06
Working Capital Days 74766670758797887691
Cash Conversion Cycle 814142119201391422
Entity Percentage Holding
Promoters 73.36%
Institutions 0.89%
Non-Institutions 25.76%
Pledged *40.6441.3342.7037.8337.8337.8437.8437.8437.8437.84
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Saurashtra Cement Ltd's performance infers:

Saurashtra Cement Ltd earnings have grown by 1.7%, whereas share price has depreciated -7.1% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

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

Saurashtra Cement Ltd share price has depreciated 11.2% annually over the past ten years.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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