India Cements Ltd. (INDIACEM) AI Stock Analysis

• Market Cap: ₹114.01B
• Dividend Yield: N/A
• Average Volume (3M): 25.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• 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: ₹422.00
• Price Target Upside: -5.33% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 5.75
• Revenue Forecast (FY): ₹46.78B

• Rating: 48 Neutral
• Price Target: ₹363.00 ▼(-18.56% 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 and Market Access

India Cements' multi-channel sales model (dealers/retail plus direct institutional/project sales) is a durable structural strength. A diversified go-to-market reduces customer concentration, helps stabilize volumes across market cycles, and supports contract-scale sales to large infrastructure customers over months.

Improving Leverage

An improving debt-to-equity trend indicates the company has reduced leverage over time, enhancing financial flexibility. Lower relative leverage can decrease interest burden and refinancing risk, giving management more runway to execute operational fixes and capital allocation over the next several months.

Proven Cash Generation in Prior Periods

Historical periods of positive free cash flow show the business can generate cash when operations and margins recover. That latent cash-generation capacity implies operational levers exist (pricing, mix, utilization) that could restore self-funded operations and pay down debt if implemented effectively.

Negative Factors

Declining Revenue and Negative Margins

Sustained revenue declines combined with negative EBIT/EBITDA and net margins are structural red flags. They indicate the core cement operations are not covering fixed and variable costs, constraining reinvestment and making recovery dependent on substantive operational or pricing improvements rather than short-term fixes.

Weak Cash Flow Conversion

Negative operating cash flow and deteriorating free cash flow point to persistent working capital or margin problems. Poor profit-to-cash conversion reduces liquidity, forces reliance on external funding, and limits the company's ability to invest, deleverage, or absorb cyclical demand shocks over the medium term.

Remaining Significant Debt Burden

Although leverage has improved, a still-significant debt stock elevates refinancing and interest-cost risk, especially given weak profits and cash flow. High absolute debt constrains strategic flexibility and increases the potential for covenant pressure if operating performance fails to rebound.

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 generates revenue primarily through the sale of cement and related products. The company's main revenue streams include the direct sale of various types of cement to construction companies, retailers, and individual consumers. Additionally, India Cements earns income from its Ready Mixed Concrete division, which provides customized concrete solutions for construction projects. The company also benefits from strategic partnerships with construction firms and infrastructure developers that require large volumes of cement. Factors contributing to its earnings include the growing demand for housing and infrastructure development in India, operational efficiencies, and investments in modern manufacturing technologies. Market pricing dynamics and regional demand also significantly influence its revenue.

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	41.95B	41.49B	49.98B	56.08B	48.58B	45.11B
Gross Profit	13.18B	14.59B	20.84B	19.07B	23.54B	25.18B
EBITDA	-3.02B	-4.81B	-232.65M	-1.42B	4.78B	7.76B
Net Income	-3.35B	-1.44B	-2.27B	-1.27B	784.63M	2.07B
Balance Sheet
Total Assets	0.00	138.30B	107.01B	114.67B	120.43B	110.90B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.05B	852.50M	688.40M	502.53M	419.60M
Total Debt	0.00	11.65B	26.18B	29.45B	30.91B	30.39B
Total Liabilities	-101.96B	36.34B	51.01B	56.40B	60.20B	53.18B
Stockholders Equity	101.96B	101.94B	55.75B	57.76B	59.47B	57.07B
Cash Flow
Free Cash Flow	0.00	-3.19B	2.17B	-771.30M	2.71B	8.81B
Operating Cash Flow	0.00	-2.56B	3.44B	-194.60M	4.39B	10.46B
Investing Cash Flow	0.00	20.15B	2.48B	4.35B	-2.50B	-1.89B
Financing Cash Flow	0.00	-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: Neutral

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 422.31, above the 50-day MA of 441.69, and above the 200-day MA of 391.74, indicating a bearish trend. The MACD of -17.30 indicates Positive momentum. The RSI at 22.72 is Positive, neither overbought nor oversold. The STOCH value of 37.80 is Neutral, 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	₹75.75B	42.43	―	0.82%	6.13%	31.60%
BIRLACORPN	58 Neutral	₹63.39B	38.81	―	0.92%	6.82%	60.64%
STARCEMENT	58 Neutral	₹80.23B	30.41	―	0.45%	18.13%	52.87%
NUVOCO	55 Neutral	₹101.08B	64.48	―	―	5.09%	458.10%
INDIACEM	48 Neutral	₹114.01B	-1,262.95	―	―	-4.25%	―
SANGHIIND	44 Neutral	₹14.07B	-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.