INDIACEM - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.6

📊 Core Financials Analysis

Profitability

ROE of –8.83% and ROCE of –5.49% indicate poor capital efficiency and negative returns.

EPS is –₹10.8, and although losses narrowed from ₹–53.2 Cr. to ₹–10.8 Cr., the company remains in the red.

No dividend yield — no income benefit for shareholders.

Leverage

Debt-to-equity ratio of 0.11 is low, which is a positive in an otherwise weak financial profile.

Low leverage gives room for restructuring or turnaround without solvency risk.

Cash Flow

Likely weak or negative, given persistent losses and poor return metrics.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio Not applicable Negative earnings — valuation unreliable

P/B Ratio ~1.11 Reasonable — reflects low market expectations

PEG Ratio Not available No meaningful growth to assess

Intrinsic Value Likely below current price due to poor profitability

🏢 Business Model & Competitive Advantage

Sector: Cement — cyclical, capital-intensive, and margin-sensitive.

Moat

Regional presence and brand recognition, but lacks cost leadership or scale advantage.

Challenges

Operational inefficiencies, weak margins, and intense competition.

FII holding dropped (–1.97%), though DII increased (+2.07%) — mixed institutional sentiment.

📉 Technical & Sentiment Indicators

RSI at 62.0 — approaching overbought zone.

MACD positive and price above both 50-DMA and 200-DMA — bullish momentum.

Volume slightly below average — momentum may be fading.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹320–₹340 range (closer to DMA support)

Long-Term View

High-risk turnaround play — not suitable for conservative investors.

Monitor for sustained profitability, margin expansion, and volume growth.

Hold only if turnaround continues and sector tailwinds persist.

Would you like a comparison with stronger cement players like Ultratech or Dalmia Bharat to evaluate relative strength and positioning?

Edit in a page