Shree Digvijay Cement (BSE:502180) - Share price, News & Analysis

Q: What is the Fair Price of 502180 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

502180 (₹64) is trading above our estimate of [[fair value]] (₹42.83)

502180 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	2/6

502180 Stock Overview

Shree Digvijay Cement Company Ltd., together with its subsidiary, engages in the manufacturing and selling cement in India.

Rewards

Price-To-Earnings ratio (18.2x) is below the Indian market (20.8x)

Risk Analysis

Dividend of 6.25% is not well covered by earnings or forecast to be in the next 3 years

Profit margins (8%) are lower than last year (11.5%)

Shree Digvijay Cement Competitors

Udaipur Cement Works

BSE:530131

₹9.4b

Mangalam Cement

BSE:502157

₹9.1b

Visaka Industries

BSE:509055

₹8.6b

IFGL Refractories

NSEI:IFGLEXPOR

₹9.6b

Price History & Performance

Summary of all time highs, changes and price drops for Shree Digvijay Cement
Historical stock prices
Current Share Price	₹64.00
52 Week High	₹87.85
52 Week Low	₹52.10
Beta	0.51
1 Month Change	4.49%
3 Month Change	-1.01%
1 Year Change	-23.40%
3 Year Change	295.31%
5 Year Change	204.04%
Change since IPO	456.52%

Shareholder Returns

	502180	IN Basic Materials	IN Market
7D	2.1%	-1.0%	1.4%
1Y	-23.4%	-10.6%	8.2%

Return vs Industry: 502180 underperformed the Indian Basic Materials industry which returned -10.6% over the past year.

Return vs Market: 502180 underperformed the Indian Market which returned 8.1% over the past year.

Price Volatility

Is 502180's price volatile compared to industry and market?
502180 volatility
502180 Average Weekly Movement	4.4%
Basic Materials Industry Average Movement	5.2%
Market Average Movement	6.4%
10% most volatile stocks in IN Market	9.0%
10% least volatile stocks in IN Market	4.1%

Stable Share Price: 502180 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 502180's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1942	259	K. Nambiar	https://www.digvijaycement.com

Shree Digvijay Cement Company Ltd., together with its subsidiary, engages in the manufacturing and selling cement in India. It offers ordinary Portland cement, Portland Pozzolana cement, sulphate resisting Portland cement, oil well cement, and other special cements under the KAMAL CEMENT and CEMENT KA SARDAR brands. The company is also involved in the transportation, warehousing, fulfillment, logistics, business intelligence, technology, and supply chain solutions; and provision of break-bulk cargo import and export, chartering and freight forwarding solutions, and commodity trading services.

Shree Digvijay Cement Fundamentals Summary

How do Shree Digvijay Cement's earnings and revenue compare to its market cap?
502180 fundamental statistics
Market Cap	₹9.22b
Earnings (TTM)	₹506.84m
Revenue (TTM)	₹6.36b

18.2x

P/E Ratio

1.4x

P/S Ratio

Is 502180 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
502180 income statement (TTM)
Revenue	₹6.36b
Cost of Revenue	₹3.48b
Gross Profit	₹2.88b
Other Expenses	₹2.38b
Earnings	₹506.84m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.52
Gross Margin	45.33%
Net Profit Margin	7.97%
Debt/Equity Ratio	0.07%

How did 502180 perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

99%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 502180 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 502180?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 502180. This is calculated by dividing 502180's market cap by their current preferred multiple.
What is 502180's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹9.22b

502180 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	7.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 502180's PE Ratio compare to its peers?

502180 PE Ratio vs Peers

The above table shows the PE ratio for 502180 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13.3x
530131 Udaipur Cement Works	20.7x	n/a	₹9.4b
502157 Mangalam Cement	12.8x	n/a	₹9.1b
509055 Visaka Industries	7.4x	n/a	₹8.6b
IFGLEXPOR IFGL Refractories	12.4x	n/a	₹9.6b
502180 Shree Digvijay Cement	18.2x	n/a	₹9.2b

Price-To-Earnings vs Peers: 502180 is expensive based on its Price-To-Earnings Ratio (18.2x) compared to the peer average (13.3x).

Price to Earnings Ratio vs Industry

How does 502180's PE Ratio compare vs other companies in the IN Basic Materials Industry?

Price-To-Earnings vs Industry: 502180 is expensive based on its Price-To-Earnings Ratio (18.2x) compared to the Indian Basic Materials industry average (17.9x)

Price to Earnings Ratio vs Fair Ratio

What is 502180's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

502180 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 502180's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 502180 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 502180 (₹64) is trading above our estimate of fair value (₹42.83)

Significantly Below Fair Value: 502180 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Shree Digvijay Cement forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

25.3%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Shree Digvijay Cement has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Shree Digvijay Cement's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Shree Digvijay Cement competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Shree Digvijay Cement performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

46.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 502180 has high quality earnings.

Growing Profit Margin: 502180's current net profit margins (8%) are lower than last year (11.5%).

Past Earnings Growth Analysis

Earnings Trend: 502180 has become profitable over the past 5 years, growing earnings by 46.9% per year.

Accelerating Growth: 502180's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 502180 had negative earnings growth (-22.9%) over the past year, making it difficult to compare to the Basic Materials industry average (-23.4%).

Return on Equity

High ROE: 502180's Return on Equity (16.2%) is considered low.

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Financial Health

How is Shree Digvijay Cement's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 502180's short term assets (₹2.3B) exceed its short term liabilities (₹1.2B).

Long Term Liabilities: 502180's short term assets (₹2.3B) exceed its long term liabilities (₹289.4M).

Debt to Equity History and Analysis

Debt Level: 502180 has more cash than its total debt.

Reducing Debt: 502180's debt to equity ratio has reduced from 52.4% to 0.07% over the past 5 years.

Debt Coverage: 502180's debt is well covered by operating cash flow (26863.8%).

Interest Coverage: 502180 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Shree Digvijay Cement current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

6.25%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 502180's dividend (6.25%) is higher than the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: 502180's dividend (6.25%) is in the top 25% of dividend payers in the Indian market (1.7%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 502180 has been paying a dividend for less than 10 years.

Growing Dividend: 502180's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (99.1%), 502180's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (264.1%), 502180's dividend payments are not well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure

CEO

K. Nambiar (50 yo)

6.75yrs

Tenure

₹75,532,887

Compensation

Mr. K. K. Rajeev Nambiar has been the Chief Executive Officer of Shree Digvijay Cement Company Ltd. since November 1, 2015 and served as its Acting Chief Financial Officer from May 24, 2016 to November 3,...

CEO Compensation Analysis

Compensation vs Market: K.'s total compensation ($USD948.65K) is above average for companies of similar size in the Indian market ($USD37.68K).

Compensation vs Earnings: K.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: 502180's management team is seasoned and experienced (5.5 years average tenure).

Board Members

Experienced Board: 502180's board of directors are considered experienced (3.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/14 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31