India Cements Ltd
India Cements Ltd
CommoditiesIndia Cements Ltd is a leading cement manufacturing company headquartered in Chennai. It was incorporated in the year 1946 by Shri S N N Sankaralinga Iyer and Sri T S Narayanaswami. While retaining cement over the years as its mainstay, India Cements has ventured into related fields like shipping, captive power and coal mining that have purposeful synergy to the core business. The co is also a sponsor of the IPL franchise “Chennai Super Kings”. [1]
India Cements shows early signs of turnaround with TTM profit growth of 111% and improving debtor days (42.7 to 20.2), but persistent negative ROE of -3.75% over 3 years, flat sales growth of -0.11% over 5 years, and a negative PE of -172.8 make it too risky for a buy. The stock trades near book value at 1.15x, offering limited downside but unclear upside catalyst.
Key Fundamentals
MicrocapCementConstructionTechnical Indicators
Key Insights
Strengths
2- Stock is trading at 1.17 times its book value
- Debtor days have improved from 42.7 to 20.2 days.
Weaknesses
3- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of -0.11% over past five years.
- Company has a low return on equity of -3.75% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoIndia Cements shows early signs of turnaround with TTM profit growth of 111% and improving debtor days (42.7 to 20.2), but persistent negative ROE of -3.75% over 3 years, flat sales growth of -0.11% over 5 years, and a negative PE of -172.8 make it too risky for a buy. The stock trades near book value at 1.15x, offering limited downside but unclear upside catalyst.
- TTM compounded profit growth of 111% signals a sharp earnings recovery from a low base
- Stock trades at just 1.15x book value, offering margin of safety for value investors
- Debtor days improved significantly from 42.7 to 20.2 days, indicating better working capital management
- Stock CAGR of 22% over 1 year shows strong recent price momentum
- 3-year stock CAGR of 21% suggests sustained investor interest despite weak fundamentals
- Last year ROE turned positive at 1% after years of negative returns, hinting at operational turnaround
- TTM sales growth of 8% marks a reversal from the -7% decline seen over the past 3 years
- Price-to-book of 2.41 is reasonable for a cement company with large capacity assets
- Negative PE ratio of -172.8 indicates the company is still loss-making on a trailing basis
- 5-year compounded sales growth of -0.11% reflects structural demand or market share issues
- 3-year average ROE of -3.75% shows sustained destruction of shareholder value
- Low interest coverage ratio signals high debt servicing burden relative to earnings
- 50% of analysts rate the stock a Sell with only 25% recommending Buy
- 5-year compounded profit decline of -18% indicates prolonged inability to generate consistent earnings
- 10-year compounded sales growth of -1% suggests a decade of revenue stagnation
- Dividend yield of just 0.27% offers negligible income return for patient investors
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Renewable energy stake acquisition Jun 11
India Cements acquired 12.48% equity stake in FPEL Services for up to ₹10.78 crore to secure 14 MW wind power for its Tamil Nadu plants, aiming to optimize energy costs and meet green energy compliance requirements.
- Director term ends Jun 23
Mr. V. Manickam's tenure as Independent Director concludes on June 23, 2026.
- Non-Executive Director resigns Jun 23
Ashok Ramchandran resigned from the board effective June 23, 2026, citing increased responsibilities elsewhere.
- No encumbrance on promoter shares Jun 13
UltraTech Cement confirmed no encumbrance exists on its India Cements shares as of March 31, 2026, under SEBI regulations.
- Board meeting for Q1FY27 results Jun 1
Board will meet July 18 to consider Q1FY27 unaudited financial results. Trading window closes July 1-20.
TL;DR: India Cements is making a modest but strategic move into renewable energy with a ₹10.78 crore investment for 14 MW wind power capacity, which should help reduce energy costs over time. No material headwinds emerged this period, and promoter UltraTech's clean shareholding confirmation signals stability. Board-level changes appear routine. The trend is steady with a slight positive tilt from the green energy initiative heading into Q1FY27 results on July 18.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,486 | 1,437 | 1,264 | 1,113 | 1,236 | 1,027 | 1,022 | 940 | 1,198 | 1,025 | 1,117 | 1,114 | 1,229 |
| Expenses | 1,533 | 1,428 | 1,260 | 1,067 | 1,199 | 1,051 | 1,185 | 1,130 | 1,200 | 942 | 1,036 | 1,035 | 1,076 |
| Operating Profit | -47 | 8 | 4 | 46 | 37 | -25 | -163 | -190 | -2 | 83 | 81 | 79 | 153 |
| OPM % | -3% | 1% | 0% | 4% | 3% | -2% | -16% | -20% | 0% | 8% | 7% | 7% | 12% |
| Other Income | -106 | 7 | 8 | 56 | 34 | 256 | -64 | 396 | 110 | -115 | 23 | 15 | 15 |
| Interest | 50 | 58 | 60 | 59 | 64 | 82 | 73 | 73 | 38 | 27 | 25 | 24 | 23 |
| Depreciation | 55 | 54 | 55 | 57 | 57 | 56 | 55 | 55 | 75 | 74 | 74 | 75 | 76 |
| PBT | -258 | -97 | -103 | -14 | -49 | 93 | -355 | 77 | -5 | -132 | 4 | -5 | 69 |
| Tax % | -5% | -24% | -17% | -53% | 2% | 23% | -5% | -51% | -486% | -1% | -101% | -41% | 13% |
| Net Profit | -229 | -87 | -80 | 1 | -61 | 58 | -339 | 119 | 18 | -133 | 9 | -3 | 60 |
| EPS in Rs | -7.32 | -2.82 | -2.58 | 0.02 | -1.95 | 1.89 | -10.94 | 3.95 | 0.47 | -4.29 | 0.28 | -0.09 | 1.92 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 5,057 | 4,879 | 5,158 | 5,267 | 5,770 | 5,186 | 4,511 | 4,858 | 5,608 | 5,112 | 4,149 | 4,485 |
| Expenses | 4,294 | 4,006 | 4,267 | 4,548 | 5,131 | 4,588 | 3,715 | 4,373 | 5,749 | 5,008 | 4,507 | 4,088 |
| Operating Profit | 763 | 873 | 891 | 720 | 639 | 599 | 796 | 486 | -141 | 104 | -358 | 397 |
| OPM % | 15% | 18% | 17% | 14% | 11% | 12% | 18% | 10% | -3% | 2% | -9% | 9% |
| Other Income | 22 | 21 | 17 | 14 | 26 | 24 | 32 | 23 | 224 | 102 | 662 | -62 |
| Interest | 478 | 440 | 380 | 365 | 350 | 343 | 271 | 198 | 242 | 244 | 266 | 99 |
| Depreciation | 303 | 291 | 276 | 279 | 265 | 256 | 247 | 226 | 219 | 226 | 239 | 299 |
| PBT | 4 | 164 | 252 | 90 | 50 | 24 | 311 | 85 | -378 | -263 | -202 | -63 |
| Tax % | 127% | 29% | 37% | 21% | 49% | -126% | 33% | 23% | -55% | -18% | -29% | 4% |
| Net Profit | -1 | 119 | 159 | 69 | 26 | 51 | 209 | 87 | -125 | -227 | -144 | -67 |
| EPS in Rs | -0.11 | 3.8 | 5.41 | 2.11 | 0.68 | 1.62 | 6.67 | 2.53 | -4.09 | -7.34 | -4.64 | -2.17 |
| Div. Payout % | 0% | 26% | 19% | 38% | 118% | 37% | 15% | 40% | 0% | 0% | 0% | 0% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 307 | 308 | 308 | 308 | 310 | 310 | 310 | 310 | 310 | 310 | 310 | 310 |
| Reserves | 3,073 | 4,742 | 4,867 | 4,961 | 4,936 | 5,188 | 5,388 | 5,637 | 5,466 | 5,265 | 9,884 | 9,814 |
| Borrowings | 3,502 | 3,296 | 3,100 | 3,197 | 3,356 | 3,593 | 3,052 | 3,091 | 2,945 | 2,618 | 1,165 | 1,305 |
| Other Liabilities | 1,805 | 2,345 | 2,674 | 2,479 | 2,696 | 2,579 | 2,340 | 3,005 | 2,746 | 2,508 | 2,471 | 1,974 |
| Total Liabilities | 8,687 | 10,692 | 10,950 | 10,946 | 11,297 | 11,670 | 11,090 | 12,043 | 11,467 | 10,701 | 13,830 | 13,403 |
| Fixed Assets | 4,599 | 7,488 | 7,260 | 7,146 | 7,072 | 7,206 | 7,065 | 7,101 | 6,803 | 6,874 | 11,638 | 11,187 |
| CWIP | 98 | 99 | 134 | 176 | 196 | 235 | 300 | 386 | 313 | 190 | 177 | 344 |
| Investments | 440 | 357 | 358 | 358 | 371 | 382 | 381 | 408 | 334 | 319 | 120 | 83 |
| Other Assets | 3,550 | 2,748 | 3,198 | 3,265 | 3,659 | 3,847 | 3,344 | 4,147 | 4,016 | 3,318 | 1,895 | 1,788 |
| Total Assets | 8,687 | 10,692 | 10,950 | 10,946 | 11,297 | 11,670 | 11,090 | 12,043 | 11,467 | 10,701 | 13,830 | 13,403 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 645 | 964 | 765 | 556 | 377 | 387 | 1,046 | 439 | -19 | 344 | -256 | -27 |
| Investing | -124 | -220 | -158 | -306 | -202 | -282 | -189 | -250 | 435 | 248 | 2,015 | -103 |
| Financing | -520 | -757 | -605 | -235 | -180 | -110 | -860 | -183 | -397 | -572 | -1,738 | 40 |
| Net Cash Flow | 1 | -14 | 2 | 16 | -5 | -6 | -3 | 6 | 19 | 19 | 20 | -89 |
| Free Cash Flow | 507 | 796 | 685 | 361 | 161 | 140 | 897 | 288 | 142 | 255 | 31 | -115 |
| CFO/OP | 90 | 112 | 94 | 84 | 61 | 70 | 138 | 100 | 8 | 349 | 42 | -5 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 37 | 42 | 37 | 45 | 47 | 52 | 46 | 70 | 54 | 50 | 58 | 20 |
| Inventory Days | 287 | 267 | 306 | 258 | 287 | 312 | 270 | 368 | 258 | 212 | 224 | 269 |
| Days Payable | 402 | 447 | 522 | 441 | 458 | 490 | 488 | 565 | 438 | 418 | 395 | 318 |
| Cash Conversion Cycle | -78 | -138 | -178 | -138 | -124 | -127 | -173 | -127 | -126 | -156 | -113 | -28 |
| Working Capital Days | -41 | -84 | -37 | -3 | -14 | -38 | -56 | -18 | 35 | -7 | 21 | -4 |
| ROCE % | 7% | 8% | 8% | 5% | 5% | 4% | 7% | 3% | -4% | -1% | -5% | 2% |
Documents
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Company Information
India Cements Ltd is a leading cement manufacturing company headquartered in Chennai. It was incorporated in the year 1946 by Shri S N N Sankaralinga Iyer and Sri T S Narayanaswami. While retaining cement over the years as its mainstay, India Cements has ventured into related fields like shipping, captive power and coal mining that have purposeful synergy to the core business. The co is also a sponsor of the IPL franchise “Chennai Super Kings”. [1]