⚠ 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: 3.2
| Stock Code | INDIACEM | Market Cap | 11,449 Cr. | Current Price | 369 ₹ | High / Low | 490 ₹ |
| Book Value | 310 ₹ | Dividend Yield | 0.00 % | ROCE | -5.85 % | ROE | -9.32 % |
| Face Value | 10.0 ₹ | DMA 50 | 412 ₹ | DMA 200 | 394 ₹ | Chg in FII Hold | 0.30 % |
| Chg in DII Hold | 0.55 % | PAT Qtr | 2.00 Cr. | PAT Prev Qtr | -6.86 Cr. | RSI | 34.4 |
| MACD | -21.1 | Volume | 2,47,675 | Avg Vol 1Wk | 2,14,434 | Low price | 253 ₹ |
| High price | 490 ₹ | Debt to equity | 0.14 | 52w Index | 49.3 % | Qtr Profit Var | 101 % |
| EPS | -3.29 ₹ | Industry PE | 28.2 |
📊 Financial Overview
- Revenue & Profitability: PAT improved from -₹6.86 Cr. to ₹2.00 Cr. (QoQ), showing recovery but still weak overall performance.
- Margins: ROE at -9.32% and ROCE at -5.85% are negative, reflecting poor profitability and efficiency.
- Debt: Debt-to-equity ratio of 0.14 indicates low leverage, which is a positive.
- Cash Flow: EPS of -₹3.29 highlights negative earnings, limiting shareholder value.
💹 Valuation Metrics
- P/E Ratio: Not applicable due to negative earnings.
- P/B Ratio: Price ₹369 vs Book Value ₹310 → trading at a premium, reflecting investor optimism despite weak fundamentals.
- PEG Ratio: Not available, limiting growth-adjusted valuation analysis.
- Intrinsic Value: Fundamentals do not justify current valuation; speculative sentiment drives pricing.
🏢 Business Model & Competitive Advantage
- India Cements operates in cement manufacturing and infrastructure materials.
- Competitive advantage lies in established brand and regional presence, but profitability weakness undermines sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹340–360 range looks safer given weak fundamentals and technical downtrend.
- Long-Term Holding: Risky for conservative investors. Suitable only for speculative positions; monitor profitability turnaround closely.
✅ Positive
- Quarterly profit turnaround from losses to ₹2 Cr.
- Low debt-to-equity ratio (0.14).
- Institutional confidence with FII (+0.30%) and DII (+0.55%) inflows.
⚠️ Limitation
- Negative ROE (-9.32%) and ROCE (-5.85%).
- EPS of -₹3.29 indicates continued weakness.
- Stock trading below DMA 50 & DMA 200, showing bearish momentum.
📉 Company Negative News
- Persistent weak profitability despite recent profit turnaround.
- Technical indicators (MACD -21.1, RSI 34.4) show bearish trend.
📈 Company Positive News
- Quarterly profit variation of 101% shows strong recovery momentum.
- FII and DII inflows reflect institutional support.
🏦 Industry
- Industry PE at 28.2 highlights sector trades at higher multiples, but India Cements cannot be compared due to negative earnings.
- Cement sector growth supported by infrastructure demand and government projects.
🔎 Conclusion
- India Cements shows signs of recovery but remains weak with negative ROE/ROCE and modest profitability.
- Entry around ₹340–360 is safer for speculative investors.
- Not ideal for long-term conservative holding; monitor earnings turnaround and sector demand closely.