We’ve recently updated our valuation analysis.

India Cements Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 INDIACEM?

Other financial metrics that can be useful for relative valuation.

INDIACEM 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/Revenue1.9x
Enterprise Value/EBITDA77x
PEG Ration/a

Price to Sales Ratio vs Peers

How does INDIACEM's PS Ratio compare to its peers?

The above table shows the PS ratio for INDIACEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.2x
500335 Birla
0.9x9.4%₹72.5b
500380 JK Lakshmi Cement
1.3x8.9%₹74.2b
500338 Prism Johnson
0.9x6.6%₹59.9b
500292 HeidelbergCement India
2xn/a₹45.0b
INDIACEM India Cements
1.4x7.0%₹73.8b

Price-To-Sales vs Peers: INDIACEM is expensive based on its Price-To-Sales Ratio (1.4x) compared to the peer average (1.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a33.1%
n/an/an/a

Price-To-Sales vs Industry: INDIACEM is expensive based on its Price-To-Sales Ratio (1.4x) compared to the Indian Basic Materials industry average (1x)


Price to Sales Ratio vs Fair Ratio

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

INDIACEM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: INDIACEM is good value based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).


Share Price vs Fair Value

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

Below Fair Value: INDIACEM (₹238.3) is trading above our estimate of fair value (₹37.81)

Significantly Below Fair Value: INDIACEM 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?

The above table shows the analyst INDIACEM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹238.30
₹160.67
-32.6%
22.8%₹207.00₹112.00n/a6
Nov ’23₹243.30
₹137.83
-43.3%
12.0%₹165.00₹112.00n/a6
Oct ’23₹269.10
₹142.17
-47.2%
16.0%₹170.00₹103.00n/a6
Sep ’23₹228.15
₹149.57
-34.4%
18.6%₹194.00₹103.00n/a7
Aug ’23₹193.80
₹154.17
-20.5%
19.5%₹194.00₹103.00n/a6
Jul ’23₹161.10
₹159.29
-1.1%
19.1%₹194.00₹103.00n/a7
Jun ’23₹167.90
₹159.29
-5.1%
19.1%₹194.00₹103.00n/a7
May ’23₹206.80
₹181.71
-12.1%
17.1%₹225.00₹126.00n/a7
Apr ’23₹218.30
₹178.14
-18.4%
16.9%₹225.00₹126.00n/a7
Mar ’23₹202.15
₹179.57
-11.2%
17.3%₹225.00₹126.00n/a7
Feb ’23₹230.90
₹180.14
-22.0%
16.5%₹226.00₹135.00n/a7
Jan ’23₹192.25
₹225.14
+17.1%
42.1%₹450.00₹152.00n/a7
Dec ’22₹182.40
₹174.17
-4.5%
16.6%₹226.00₹145.00n/a6
Nov ’22₹205.75
₹172.50
-16.2%
14.4%₹213.00₹145.00₹243.306
Oct ’22₹200.80
₹172.50
-14.1%
14.4%₹213.00₹145.00₹269.106
Sep ’22₹175.90
₹172.50
-1.9%
14.4%₹213.00₹145.00₹228.156
Aug ’22₹192.15
₹172.67
-10.1%
14.1%₹212.00₹137.00₹193.806
Jul ’22₹193.40
₹163.20
-15.6%
18.8%₹212.00₹132.00₹161.105
Jun ’22₹183.20
₹163.20
-10.9%
18.8%₹212.00₹132.00₹167.905
May ’22₹163.20
₹140.40
-14.0%
15.0%₹167.00₹119.00₹206.805
Apr ’22₹169.80
₹143.20
-15.7%
13.7%₹164.00₹119.00₹218.305
Mar ’22₹176.05
₹143.20
-18.7%
13.7%₹164.00₹119.00₹202.155
Feb ’22₹162.35
₹135.60
-16.5%
12.8%₹160.00₹119.00₹230.905
Jan ’22₹180.75
₹110.00
-39.1%
21.3%₹136.00₹79.00₹192.256
Dec ’21₹156.05
₹107.50
-31.1%
19.8%₹136.00₹79.00₹182.406
Nov ’21₹118.35
₹93.29
-21.2%
23.0%₹120.00₹65.00₹205.757

Analyst Forecast: Target price is lower than the current share price.


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