India Cements Ltd. (INDIACEM) AI Stock Analysis

• Market Cap: ₹109.70B
• Dividend Yield: N/A
• Average Volume (3M): 25.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -4.25%
• EPS Growth: N/A
• Country: IN
• Employees: 1,875
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -0.09
• Shares Outstanding: 309,897,220
• 10 Day Avg. Volume: 20,447
• 30 Day Avg. Volume: 25,576
• PEG Ratio: 1.65
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 2.10
• P/FCF Ratio: -27.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.75
• Revenue Forecast (FY): ₹46.78B

• Rating: 48 Neutral
• Price Target: ₹350.00 ▼(-21.48% Downside)
• Action: Reiterated Date: 12/05/25
• Date: Action: Reiterated 12/05/25

India Cements Ltd. faces significant financial and valuation challenges, with declining revenues and profitability, and an extremely high P/E ratio suggesting overvaluation. While technical indicators show some positive trends, the overall financial health and valuation concerns weigh heavily on the stock's attractiveness.

Positive Factors

Distribution & market access

A diversified go-to-market model—dealers/retail plus direct institutional sales—provides durable access to both retail housing demand and large infrastructure contracts. This mix smooths volume volatility, supports steady utilization of plants and preserves long-term revenue channels across cycles.

Modest revenue growth

Positive revenue growth indicates underlying demand resilience in its served markets. Over 2–6 months this supports utilization and the potential to leverage fixed costs; sustained top-line growth can help restore margins if cost pressures are managed and pricing discipline is maintained.

Improving leverage & equity base

An improving debt-to-equity trend and stable shareholders' equity share provide financial headroom. Reduced leverage increases solvency and refinancing flexibility, enabling medium-term investments or working capital support without immediately relying on dilutive financing if operational recovery continues.

Negative Factors

Weak cash generation

Negative operating cash flow and falling free cash flow are structural concerns: they erode liquidity, limit capacity to fund capex or repay debt, and increase reliance on external financing. Persisting weak cash conversion undermines operational resilience and strategic optionality over the medium term.

Declining profitability & margins

Eroding margins and negative net profits reflect sustained cost pressures (energy, raw materials, logistics) and pricing constraints. Continued unprofitability reduces retained earnings, weakens ROE, and hampers reinvestment, making structural margin recovery essential for medium-term stability.

Residual leverage risk

Despite improvements, a material outstanding debt load raises refinancing and interest-service risk, especially alongside negative cash flows and losses. High leverage limits management flexibility on capex and pricing strategy and amplifies vulnerability to demand or cost shocks over several quarters.

India Cements Ltd. Business Overview & Revenue Model

Company Description

The India Cements Limited produces and sells cement and cement related products in India. It offers cement and allied products under the Sankar Super Power, Coromandel King, and Raasi Gold brands, as well as the Coromandel White and Coromandel Super brands; and ready mix concrete. The company also engages in the generation of power from windmills and thermal power plants; provision of ship hiring services; and ownership and operation of coal mines. It exports its cement and clinker to various markets internationally. The India Cements Limited was incorporated in 1946 and is based in Chennai, India.

How the Company Makes Money

India Cements primarily makes money by manufacturing cement (and related intermediate products such as clinker) and selling these products in its operating markets. Its core revenue stream is the sale of cement under its brands to (1) trade customers via distributors/dealers and retailers for housing and small construction demand and (2) non-trade customers such as infrastructure projects, contractors, and institutional buyers through direct sales. The company’s earnings are driven by cement sales volumes and realizations (selling prices), product mix across cement types, and the geographic distribution of demand. Reported profitability is materially influenced by key cost and operating factors—especially energy and fuel (power, coal/petcoke/other fuels), raw materials, logistics and freight for moving cement, and capacity utilization at its plants—which affect margins on cement sold. Information on specific long-term partnerships contributing to earnings is null.

India Cements Ltd. Financial Statement Overview

Summary

India Cements Ltd. is facing significant financial challenges, with declining revenues, profitability, and cash flows. Despite a stable balance sheet with adequate equity, persistent losses and cash flow issues highlight the need for strategic realignment and operational improvements.

Income Statement

India Cements Ltd. has been facing declining revenue trends recently, with a significant drop in total revenue from 2023 to 2025, indicating challenges in maintaining sales momentum. The gross profit margin has also deteriorated, suggesting increased cost pressures or pricing challenges. The net profit margin is negative, reflecting ongoing losses, and negative EBIT and EBITDA margins further highlight operational inefficiencies. However, the company had better financial performance in earlier years, indicating potential for recovery if strategic changes are implemented.

Balance Sheet

The company's balance sheet shows a reasonable equity base with a debt-to-equity ratio that has improved over time, suggesting some reduction in leverage. Stockholders' equity as a percentage of total assets has remained stable, indicating a strong equity position. However, the company still carries a significant amount of debt, which could pose risks if financial performance does not improve. The return on equity has been negative in recent years due to losses, highlighting the need for operational improvements.

Cash Flow

The cash flow situation is concerning, with negative operating cash flow in the most recent year and a declining trend in free cash flow. This indicates potential liquidity challenges and the need for better cash management. Despite previous periods of positive free cash flow, the recent decline suggests difficulties in sustaining cash generation. The operating cash flow to net income ratio has also been unfavorable, pointing to inefficiencies in converting profits to cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	42.80B	41.49B	49.98B	56.08B	48.58B	45.11B
Gross Profit	13.08B	14.59B	20.84B	19.07B	23.54B	25.18B
EBITDA	-359.79M	-4.81B	-232.65M	-1.42B	4.78B	7.76B
Net Income	128.92M	-1.44B	-2.27B	-1.27B	784.63M	2.07B
Balance Sheet
Total Assets	136.63B	138.30B	107.01B	114.67B	120.43B	110.90B
Cash, Cash Equivalents and Short-Term Investments	653.80M	1.05B	852.50M	688.40M	502.53M	419.60M
Total Debt	13.40B	11.65B	26.18B	29.45B	30.91B	30.39B
Total Liabilities	35.90B	36.34B	51.01B	56.40B	60.20B	53.18B
Stockholders Equity	100.73B	101.94B	55.75B	57.76B	59.47B	57.07B
Cash Flow
Free Cash Flow	-2.52B	-3.19B	2.17B	-771.30M	2.71B	8.81B
Operating Cash Flow	-1.95B	-2.56B	3.44B	-194.60M	4.39B	10.46B
Investing Cash Flow	71.30M	20.15B	2.48B	4.35B	-2.50B	-1.89B
Financing Cash Flow	1.23B	-17.38B	-5.72B	-3.97B	-1.83B	-8.60B

India Cements Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 445.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDIACEM, the sentiment is Negative. The current price of 445.75 is above the 20-day moving average (MA) of 403.95, above the 50-day MA of 435.54, and above the 200-day MA of 392.50, indicating a bearish trend. The MACD of -21.65 indicates Positive momentum. The RSI at 21.07 is Positive, neither overbought nor oversold. The STOCH value of 15.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDIACEM.

India Cements Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JKLAKSHMI	61 Neutral	₹74.31B	42.43	―	0.82%	6.13%	31.60%
STARCEMENT	58 Neutral	₹82.80B	30.41	―	0.45%	18.13%	52.87%
NUVOCO	55 Neutral	₹104.18B	64.48	―	―	5.09%	458.10%
BIRLACORPN	53 Neutral	₹60.17B	38.81	―	0.92%	6.82%	60.64%
INDIACEM	48 Neutral	₹109.70B	-1,262.95	―	―	-4.25%	―
SANGHIIND	44 Neutral	₹13.19B	-3.63	―	―	32.54%	19.65%

India Cements Ltd. Corporate Events

India Cements Posts Earnings Call Audio for December 2025 Results

India Cements Ltd. has notified the stock exchanges that the audio recording of its earnings call discussing financial results for the quarter and nine months ended 31 December 2025 has been made available on the company’s website, in compliance with disclosure requirements under SEBI’s Listing Regulations. The move enhances transparency and accessibility for investors and other stakeholders, allowing them to review management’s commentary on recent performance and outlook at their convenience.