NSEI:INDIACEM

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Executive Summary

The India Cements Limited produces and sells cement and cement related products in India and internationally. More Details


Snowflake Analysis

Moderate growth potential and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: INDIACEM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

INDIACEM

-0.1%

IN Basic Materials

-1.3%

IN Market


1 Year Return

40.1%

INDIACEM

9.8%

IN Basic Materials

-2.5%

IN Market

Return vs Industry: INDIACEM exceeded the Indian Basic Materials industry which returned 9.8% over the past year.

Return vs Market: INDIACEM exceeded the Indian Market which returned -2.5% over the past year.


Shareholder returns

INDIACEMIndustryMarket
7 Day-2.8%-0.1%-1.3%
30 Day1.1%11.6%1.6%
90 Day6.2%11.5%6.0%
1 Year40.8%40.1%10.5%9.8%-0.7%-2.5%
3 Year-35.1%-36.6%-7.5%-9.2%-4.5%-9.2%
5 Year56.0%50.5%48.2%43.8%39.6%29.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

661.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INDIACEM (₹118.35) is trading above our estimate of fair value (₹75.54)

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


Price To Earnings Ratio

PE vs Industry: INDIACEM is poor value based on its PE Ratio (661.4x) compared to the IN Basic Materials industry average (19.1x).

PE vs Market: INDIACEM is poor value based on its PE Ratio (661.4x) compared to the Indian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: INDIACEM is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: INDIACEM is good value based on its PB Ratio (0.7x) compared to the IN Basic Materials industry average (1x).


Next Steps

Future Growth

How is India Cements forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

112.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INDIACEM's forecast earnings growth (112% per year) is above the savings rate (7.2%).

Earnings vs Market: INDIACEM's earnings (112% per year) are forecast to grow faster than the Indian market (25.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: INDIACEM's revenue (8.6% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: INDIACEM's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if INDIACEM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has India Cements performed over the past 5 years?

-28.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INDIACEM has a large one-off loss of ₹137.8M impacting its June 30 2020 financial results.

Growing Profit Margin: INDIACEM's current net profit margins (0.1%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: INDIACEM's earnings have declined by 28.6% per year over the past 5 years.

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

Earnings vs Industry: INDIACEM had negative earnings growth (-93.4%) over the past year, making it difficult to compare to the Basic Materials industry average (-5.1%).


Return on Equity

High ROE: INDIACEM's Return on Equity (0.1%) is considered low.


Next Steps

Financial Health

How is India Cements's financial position?


Financial Position Analysis

Short Term Liabilities: INDIACEM's short term assets (₹23.8B) do not cover its short term liabilities (₹28.8B).

Long Term Liabilities: INDIACEM's short term assets (₹23.8B) do not cover its long term liabilities (₹32.4B).


Debt to Equity History and Analysis

Debt Level: INDIACEM's debt to equity ratio (56.8%) is considered high.

Reducing Debt: INDIACEM's debt to equity ratio has reduced from 90% to 56.8% over the past 5 years.

Debt Coverage: INDIACEM's debt is not well covered by operating cash flow (12.3%).

Interest Coverage: INDIACEM's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet


Next Steps

Dividend

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

0.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INDIACEM's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: INDIACEM's dividend (0.51%) is low compared to the top 25% of dividend payers in the Indian market (2.35%).


Stability and Growth of Payments

Stable Dividend: INDIACEM's dividend payments have been volatile in the past 10 years.

Growing Dividend: INDIACEM's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (335.3%), INDIACEM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.2yrs

Average board tenure


CEO

Narayanaswamy Srinivasan (75 yo)

no data

Tenure

₹34,191,000

Compensation

Mr. Narayanaswamy Srinivasan serves as Chief Executive Officer at The India Cements Limited and has been its Managing Director since September 24, 2007. Mr. Srinivasan has been Executive Director at The In ...


CEO Compensation Analysis

Compensation vs Market: Narayanaswamy's total compensation ($USD459.43K) is about average for companies of similar size in the Indian market ($USD374.52K).

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


Board Members

NamePositionTenureCompensationOwnership
Narayanaswamy Srinivasan
Vice Chairmanno data₹34.19mno data
Rupa Gurunath
Whole Time Director13.08yrs₹21.97m0.012%
₹ 4.2m
Chitra Srinivasan
Non-Executive Director10.58yrs₹200.00k0.025%
₹ 9.1m
C. Basavaraju
Independent Non-Executive Director2.17yrs₹290.00kno data
Balasubramanian Adityan
Independent Non-Executive Director4.83yrs₹380.00k0.0078%
₹ 2.8m
Krishna Nair
Independent Non-Executive Director0.33yr₹80.00kno data
Vijayaraghavachari Ranganathan
Independent Non-Executive Director4.17yrs₹370.00kno data
Lakshmi Sreekumar
Independent Non-Executive Director2.17yrs₹520.00kno data
Sandhya Rajan
Independent Non-Executive Director2.17yrs₹470.00kno data
V. Venkatakrishnan
Nominee Non-Executive Director2yrs₹200.00k0.00010%
₹ 36.0k
Nalini Ratnam
Nominee Director0.58yr₹50.00kno data

2.2yrs

Average Tenure

60yo

Average Age

Experienced Board: INDIACEM's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

The India Cements Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The India Cements Limited
  • Ticker: INDIACEM
  • Exchange: NSEI
  • Founded: 1946
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹36.041b
  • Shares outstanding: 309.90m
  • Website: https://www.indiacements.co.in

Location

  • The India Cements Limited
  • Coromandel Towers
  • 93, Santhome High Road
  • Chennai
  • Tamil Nadu
  • 600028
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530005BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1999
INDIACEMNSEI (National Stock Exchange of India)YesEquity SharesININRAug 1999
INC05BDL (Bourse de Luxembourg)SPON GDR REG SLUUSDOct 2005

Biography

The India Cements Limited produces and sells cement and cement related products in India and internationally. It offers cement and allied products under the Sankar Super Power, Coromandel King, and Raasi G ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 12:44
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.