⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
INDIACEM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | INDIACEM | Market Cap | 13,573 Cr. | Current Price | 438 ₹ | High / Low | 490 ₹ |
| Book Value | 310 ₹ | Dividend Yield | 0.00 % | ROCE | -5.85 % | ROE | -9.32 % |
| Face Value | 10.0 ₹ | DMA 50 | 437 ₹ | DMA 200 | 388 ₹ | Chg in FII Hold | 0.30 % |
| Chg in DII Hold | 0.55 % | PAT Qtr | 2.00 Cr. | PAT Prev Qtr | -6.86 Cr. | RSI | 46.0 |
| MACD | 2.73 | Volume | 4,73,983 | Avg Vol 1Wk | 4,86,623 | Low price | 239 ₹ |
| High price | 490 ₹ | Debt to equity | 0.14 | 52w Index | 79.4 % | Qtr Profit Var | 101 % |
| EPS | -3.29 ₹ | Industry PE | 30.0 |
📊 Core Financials
- Revenue & Profitability: PAT turned positive at 2 Cr. from a loss of -6.86 Cr. QoQ, but overall profitability remains weak.
- Margins: ROE at -9.32% and ROCE at -5.85% indicate poor efficiency and shareholder value erosion.
- Debt: Debt-to-equity ratio of 0.14 is low, reflecting manageable leverage.
- Cash Flow: Dividend yield of 0.00% shows no shareholder payout, limiting investor reward.
💹 Valuation Indicators
- P/E Ratio: Not applicable due to negative EPS (-3.29 ₹).
- P/B Ratio: Current Price (438 ₹) / Book Value (310 ₹) ≈ 1.41, reasonable valuation.
- PEG Ratio: Not available, limiting growth-adjusted valuation analysis.
- Intrinsic Value: Current price near DMA 50 (437 ₹) and above DMA 200 (388 ₹), suggesting technical support but fundamentals remain weak.
🏦 Business Model & Competitive Advantage
- India Cements operates in cement manufacturing, serving construction and infrastructure demand.
- Competitive advantage lies in established brand and regional presence, but profitability challenges persist.
- Overall health is weak due to negative returns despite low debt levels.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Safer entry between 380 ₹ – 400 ₹, closer to intrinsic value and support levels.
- Long-Term Holding: Risky for conservative investors due to negative returns. Suitable only for speculative investors betting on sector recovery.
✅ Positive
- Quarterly PAT turned positive (2 Cr. vs -6.86 Cr.).
- Low debt-to-equity ratio (0.14) ensures financial stability.
- Institutional support with FII (+0.30%) and DII (+0.55%) increases.
⚠️ Limitation
- Negative ROE (-9.32%) and ROCE (-5.85%) show poor efficiency.
- No dividend yield, limiting investor reward.
- EPS remains negative (-3.29 ₹).
📉 Company Negative News
- Persistent weak profitability despite slight improvement in PAT.
- Stock trading below recent highs (490 ₹), showing limited momentum.
📈 Company Positive News
- PAT turned positive QoQ, showing early signs of recovery.
- Institutional holdings increased, reflecting confidence from FII and DII investors.
🏭 Industry
- Industry PE at 30.0 highlights stronger profitability among peers compared to India Cements.
- Cement sector growth driven by infrastructure and housing demand.
- Competition from larger cement players limits pricing power.
🔎 Conclusion
- India Cements shows slight improvement in profitability but remains fundamentally weak with negative returns.
- Low debt provides some stability, but valuation is only reasonable if earnings improve.
- Best suited for speculative investors entering near 380–400 ₹, while conservative investors should avoid until profitability stabilizes.
Would you like me to also prepare a comparative HTML report of India Cements versus peers like UltraTech and Shree Cement to highlight relative valuation and profitability strength?