NSEI:KAKATCEM

Stock Analysis Report

Kakatiya Cement Sugar and Industries

Executive Summary

Kakatiya Cement Sugar and Industries Limited manufactures and sells Portland cement in India.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.

Share Price & News

How has Kakatiya Cement Sugar and Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.3%

KAKATCEM

-3.1%

IN Basic Materials

-1.5%

IN Market


1 Year Return

-24.8%

KAKATCEM

3.0%

IN Basic Materials

3.8%

IN Market

Return vs Industry: KAKATCEM underperformed the Indian Basic Materials industry which returned 3% over the past year.

Return vs Market: KAKATCEM underperformed the Indian Market which returned 3.8% over the past year.


Shareholder returns

KAKATCEMIndustryMarket
7 Day-3.3%-3.1%-1.5%
30 Day-1.8%1.1%4.1%
90 Day-8.7%-3.2%7.4%
1 Year-23.6%-24.8%3.6%3.0%5.9%3.8%
3 Year-32.0%-34.5%17.0%15.0%34.7%27.6%
5 Year39.6%30.9%41.9%37.5%37.0%31.1%

Price Volatility Vs. Market

How volatile is Kakatiya Cement Sugar and Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kakatiya Cement Sugar and Industries undervalued compared to its fair value and its price relative to the market?

10.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KAKATCEM (₹151.55) is trading above our estimate of fair value (₹25.93)

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


Price To Earnings Ratio

PE vs Industry: KAKATCEM is good value based on its PE Ratio (10.6x) compared to the Basic Materials industry average (16.1x).

PE vs Market: KAKATCEM is good value based on its PE Ratio (10.6x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KAKATCEM is good value based on its PB Ratio (0.5x) compared to the IN Basic Materials industry average (0.9x).


Next Steps

Future Growth

How is Kakatiya Cement Sugar and Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KAKATCEM's forecast earnings growth (10.8% per year) is above the savings rate (7.6%).

Earnings vs Market: KAKATCEM's earnings (10.8% per year) are forecast to grow slower than the Indian market (19% per year).

High Growth Earnings: KAKATCEM's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if KAKATCEM's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if KAKATCEM's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Kakatiya Cement Sugar and Industries performed over the past 5 years?

-10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KAKATCEM has high quality earnings.

Growing Profit Margin: KAKATCEM's current net profit margins (6.6%) are higher than last year (-4.8%).


Past Earnings Growth Analysis

Earnings Trend: KAKATCEM's earnings have declined by -10.5% per year over the past 5 years.

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

Earnings vs Industry: KAKATCEM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Basic Materials industry (12.6%).


Return on Equity

High ROE: KAKATCEM's Return on Equity (4.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kakatiya Cement Sugar and Industries's financial position?


Financial Position Analysis

Short Term Liabilities: KAKATCEM's short term assets (₹2.2B) exceeds its short term liabilities (₹376.2M)

Long Term Liabilities: KAKATCEM's short term assets (2.2B) exceeds its long term liabilities (120.4M)


Debt to Equity History and Analysis

Debt Level: KAKATCEM's debt to equity ratio (8.7%) is considered satisfactory

Reducing Debt: KAKATCEM's debt to equity ratio has increased from 5.2% to 8.7% over the past 5 years.

Debt Coverage: KAKATCEM's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet

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

Debt Coverage by Assets: KAKATCEM's debt is covered by short term assets (assets are 11.3x debt).


Next Steps

Dividend

What is Kakatiya Cement Sugar and Industries's current dividend yield, its reliability and sustainability?

1.98%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%0.6%markettop25%2.4%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: KAKATCEM's dividend (1.98%) is higher than the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: KAKATCEM's dividend (1.98%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).


Stability and Growth of Payments

Stable Dividend: KAKATCEM's dividends per share have been stable in the past 10 years.

Growing Dividend: KAKATCEM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21%), KAKATCEM's dividend payments are 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

What is the CEO of Kakatiya Cement Sugar and Industries's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average board tenure


CEO

P. Anuradha (41yo)

1.5yrs

Tenure

0

Dr. P. Anuradha serves as Chief Executive Officer of the Kakatiya Cement Sugar and Industries Ltd since May 25, 2018. She served as the Chief Executive at Kakatiya Cement Sugar & Industries since April 5,  ...


Board Age and Tenure

6.5yrs

Average Tenure

63yo

Average Age

Experienced Board: KAKATCEM's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: KAKATCEM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹465,12312 Sep 19
Pothana Veeraiah
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares2,623
Max Price₹177.32
Buy₹284,08710 Sep 19
Pothana Veeraiah
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares1,669
Max Price₹170.21
Buy₹1,716,67109 Sep 19
Pothana Veeraiah
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares10,270
Max Price₹167.15
Buy₹303,08705 Sep 19
Pothana Veeraiah
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares1,863
Max Price₹162.69
Buy₹609,78204 Sep 19
Pothana Veeraiah
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares3,759
Max Price₹162.22
Buy₹463,70331 Aug 19
Pothana Veeraiah
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares2,883
Max Price₹160.84
Buy₹1,089,50230 Aug 19
Pothana Veeraiah
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares6,796
Max Price₹160.32
Buy₹1,061,24329 Aug 19
Pothana Veeraiah
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares6,644
Max Price₹159.73
Buy₹387,75028 Jun 19
Pothana Veeraiah
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares2,000
Max Price₹193.88
Buy₹338,33027 Jun 19
Pothana Veeraiah
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares1,816
Max Price₹186.31
Buy₹196,42326 Jun 19
Pothana Veeraiah
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares1,105
Max Price₹177.76
Buy₹581,20125 Jun 19
Pothana Veeraiah
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares3,290
Max Price₹176.66

Ownership Breakdown

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


Management Team

  • Pothana Veeraiah (49yo)

    Chairman & MD

    • Tenure: 3.8yrs
  • P. Anuradha (41yo)

    Chief Executive Officer

    • Tenure: 1.5yrs
  • M. Dattu (65yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • D. Gopala Raju (54yo)

    President of Cement Works

    • Tenure: 0yrs
  • B. Prasad (68yo)

    GM, Compliance Officer & Company Secretary

    • Tenure: 4.3yrs
  • J. Chakravarthi (46yo)

    Chief Chemist

    • Tenure: 0yrs

Board Members

  • Tummala Ramesh Bose (78yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: ₹40.00k
  • Boddu Subbaiah (89yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: ₹30.00k
  • Pothana Veeraiah (49yo)

    Chairman & MD

    • Tenure: 3.8yrs
  • Jasti Rao (66yo)

    Non Executive Director

    • Tenure: 0yrs
    • Compensation: ₹30.00k
  • Kanagala Rao (60yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: ₹20.00k
  • M. Varalakshmi (60yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: ₹10.00k

Company Information

Kakatiya Cement Sugar and Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kakatiya Cement Sugar and Industries Limited
  • Ticker: KAKATCEM
  • Exchange: NSEI
  • Founded: 1979
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹1.178b
  • Shares outstanding: 7.77m
  • Website: https://www.kakatiyacements.com

Number of Employees


Location

  • Kakatiya Cement Sugar and Industries Limited
  • 1-10-140/1, Gurukrupa
  • Ashok Nagar
  • Hyderabad
  • Andhra Pradesh
  • 500020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500234BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 1995
KAKATCEMNSEI (National Stock Exchange of India)YesEquity SharesININRDec 1995

Biography

Kakatiya Cement Sugar and Industries Limited manufactures and sells Portland cement in India. The company operates through three segments: Cement, Sugar, and Power. It also produces and sells sugar, as wel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 12:41
End of Day Share Price2019/11/14 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.