NSEI:BVCL

Stock Analysis Report

Barak Valley Cements

Executive Summary

Barak Valley Cements Limited manufactures and sells various grades of cement and clinker primarily in India.

Rewards

PE ratio (6.4x) is below the Indian market (12.9x)

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹244M)

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Fair value with questionable track record.

Share Price & News

How has Barak Valley Cements's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BVCL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.9%

BVCL

-2.4%

IN Basic Materials

-1.8%

IN Market


1 Year Return

-24.8%

BVCL

6.1%

IN Basic Materials

5.2%

IN Market

Return vs Industry: BVCL underperformed the Indian Basic Materials industry which returned 6.1% over the past year.

Return vs Market: BVCL underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

BVCLIndustryMarket
7 Day0.9%-2.4%-1.8%
30 Day11.0%-0.1%-0.9%
90 Day-21.0%6.4%8.3%
1 Year-24.8%-24.8%6.7%6.1%7.2%5.2%
3 Year-49.0%-49.0%11.2%9.3%30.3%23.4%
5 Year-4.9%-4.9%46.8%42.1%39.3%26.8%

Price Volatility Vs. Market

How volatile is Barak Valley Cements's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Barak Valley Cements undervalued compared to its fair value and its price relative to the market?

6.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate BVCL's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate BVCL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: BVCL is good value based on its PE Ratio (6.4x) compared to the Basic Materials industry average (14.7x).

PE vs Market: BVCL is good value based on its PE Ratio (6.4x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BVCL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BVCL is good value based on its PB Ratio (0.2x) compared to the IN Basic Materials industry average (0.9x).


Next Steps

Future Growth

How is Barak Valley Cements forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.5%

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 Barak Valley Cements 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.


Next Steps

Past Performance

How has Barak Valley Cements performed over the past 5 years?

34.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BVCL has a large one-off gain of ₹35.8M impacting its September 30 2019 financial results.

Growing Profit Margin: BVCL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BVCL has become profitable over the past 5 years, growing earnings by 34.3% per year.

Accelerating Growth: BVCL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BVCL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Basic Materials industry (10.3%).


Return on Equity

High ROE: BVCL's Return on Equity (3.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Barak Valley Cements's financial position?


Financial Position Analysis

Short Term Liabilities: BVCL's short term assets (₹668.4M) do not cover its short term liabilities (₹989.6M).

Long Term Liabilities: BVCL's short term assets (₹668.4M) exceed its long term liabilities (₹648.5M).


Debt to Equity History and Analysis

Debt Level: BVCL's debt to equity ratio (79.1%) is considered high.

Reducing Debt: BVCL's debt to equity ratio has reduced from 105.2% to 79.1% over the past 5 years.

Debt Coverage: BVCL's debt is not well covered by operating cash flow (11%).

Interest Coverage: BVCL's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet

Inventory Level: BVCL has a high level of physical assets or inventory.

Debt Coverage by Assets: BVCL's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Barak Valley Cements's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BVCL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BVCL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BVCL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BVCL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BVCL is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BVCL's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Barak Valley Cements's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average board tenure


CEO

Mukesh Shovasaria (49yo)

3.5yrs

Tenure

₹2,331,000

Compensation

Mr. Mukesh Kumar Shovasaria has been the Chief Executive Officer at Barak Valley Cement Ltd. since June 1, 2016 and serves as its Vigilance and Ethics Officer. 


CEO Compensation Analysis

Compensation vs Market: Mukesh's total compensation ($USD32.61K) is about average for companies of similar size in the Indian market ($USD33.57K).

Compensation vs Earnings: Mukesh's compensation has been consistent with company performance over the past year.


Board Age and Tenure

6.0yrs

Average Tenure

62yo

Average Age

Experienced Board: BVCL's board of directors are considered experienced (6 years average tenure).


Insider Trading

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


Ownership Breakdown

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


Management Team

  • Manoj Agarwala (50yo)

    Senior Vice President of Finance

    • Tenure: 0yrs
  • Kamakhya Chamaria (66yo)

    Vice Chairman & MD

    • Tenure: 0yrs
  • Jagdish Shah (73yo)

    General Manager of Administration

    • Tenure: 0yrs
    • Compensation: ₹360.00k
  • Ashok Bagaria (60yo)

    Senior General Manager of Sales & Marketing

    • Tenure: 0yrs
    • Compensation: ₹360.00k
  • R. Keyal (66yo)

    General Manager of Accounts & Finance

    • Tenure: 0yrs
    • Compensation: ₹222.00k
  • Sheo Kailash Dalmia (74yo)

    Senior Vice President of Works

    • Tenure: 0yrs
  • Rajesh Aggarwal (46yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: ₹2.36m
  • Mukesh Shovasaria (49yo)

    CEO and Vigilance & Ethics Officer

    • Tenure: 3.5yrs
    • Compensation: ₹2.33m

Board Members

  • Dhanpat Agarwal (60yo)

    Independent & Non-Executive Director

    • Tenure: 13.8yrs
  • Kamakhya Chamaria (66yo)

    Vice Chairman & MD

    • Tenure: 0yrs
  • Mahendra Agarwal (56yo)

    Vice Chairman of the Board

    • Tenure: 0yrs
  • Santosh Bajaj (62yo)

    Non Executive Director

    • Tenure: 13.8yrs
  • Renu Kejriwal (46yo)

    Independent & Non-Executive Director

    • Tenure: 6yrs
  • Shyam Agarwal (66yo)

    Non- Executive Independent Director

    • Tenure: 1.1yrs
  • Puran Chand (69yo)

    Independent & Non-Executive Director

    • Tenure: 0.6yrs

Company Information

Barak Valley Cements Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Barak Valley Cements Limited
  • Ticker: BVCL
  • Exchange: NSEI
  • Founded: 1999
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹244.203m
  • Shares outstanding: 22.16m
  • Website: https://www.barakcement.com

Number of Employees


Location

  • Barak Valley Cements Limited
  • 281, Deepali
  • Pitampura
  • Delhi
  • Delhi
  • 110034
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532916BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2007
BVCLNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2007

Biography

Barak Valley Cements Limited manufactures and sells various grades of cement and clinker primarily in India. The company offers ordinary portland cement and portland pozzolana cement under the Valley Stron ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 13:01
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.