Saurashtra Cement Limited (SAURASHCEM) AI Stock Analysis

• Market Cap: ₹6.55B
• Dividend Yield: 2.39%
• Average Volume (3M): 12.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 2.37%
• EPS Growth: 55.27%
• Country: IN
• Employees: 790
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -0.92
• Shares Outstanding: 111,287,280
• 10 Day Avg. Volume: 6,310
• 30 Day Avg. Volume: 12,838
• PEG Ratio: -1.49
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.59
• P/FCF Ratio: -16.27
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹65.00 ▼(-21.97% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is primarily held back by weak technicals (price below key moving averages with negative MACD and low RSI), alongside mixed financial performance driven by inconsistent profitability and recent free-cash-flow pressure. A stable equity base and acceptable margins provide partial support, while the P/E and lack of dividend data keep valuation neutral.

Positive Factors

Gross margin resilience

Sustained healthy gross margins indicate the company can manage production and input costs effectively, preserving cash generation at the core operations. Over 2–6 months this provides a buffer against input-price swings and supports pricing flexibility and operational stability.

Stable balance sheet

A solid equity base and moderate leverage reduce refinancing and solvency risk, enabling the company to fund working capital and necessary maintenance capex without immediate stress. This structural stability supports continued operations through sector cycles.

Top-line growth momentum

Around 9% revenue growth indicates persistent demand for cement products, reflecting exposure to infrastructure and real estate activity. Sustained top-line growth helps improve capacity utilization and spreads fixed costs, strengthening medium-term margin recovery potential.

Negative Factors

Inconsistent profitability

Volatile net margins and episodic losses reduce predictability of earnings and ROE, complicating capital allocation. Over the medium term this undermines the firm's ability to self-fund growth, weakens investor confidence, and raises execution risk on strategic initiatives.

Weak free cash flow conversion

Negative and inconsistent free cash flow limits the company's capacity to invest in maintenance capex, reduce debt, or return capital to shareholders without external financing. Structurally, poor cash conversion increases liquidity risk and reliance on markets during downturns.

Eroding operating margins

A downward trend in EBITDA margins suggests rising unit costs or pricing pressure reducing operating leverage. Persisting margin erosion diminishes internal funds for reinvestment and weakens resilience to commodity and freight cost swings common in cement manufacturing.

Saurashtra Cement Limited Business Overview & Revenue Model

Company Description

Saurashtra Cement Limited engages in the manufacture and sale of cement and paints. The company operates in two segments, Cement and Clinker, and Paints. It offers ordinary Portland cement, Portland Pozzolana cement, and SRPC cement, as well as clinker products. The company markets its cement products under the HATHI brand name. It operates in India, Africa, the Indian Ocean, and the Middle East countries. The company also exports its products. Saurashtra Cement Limited was incorporated in 1956 and is based in Mumbai, India.

How the Company Makes Money

Saurashtra Cement Limited generates revenue primarily through the sale of its cement and clinker products. The company has a well-established distribution network that allows it to reach a broad customer base, including retail consumers, contractors, and large construction firms. Key revenue streams include sales from different cement grades, which cater to various market segments. Additionally, SAURASHCEM benefits from strategic partnerships with construction companies and suppliers that enhance its market presence. The company also engages in cost-effective production methods and utilizes technological advancements to improve efficiency and reduce operational costs, contributing positively to its profit margins.

Saurashtra Cement Limited Financial Statement Overview

Summary

Mixed fundamentals: healthy gross margin and a stable equity base with manageable leverage, but profitability has been volatile (including loss years) and free cash flow has been inconsistent with recent negative periods, raising liquidity and execution risk.

Income Statement

Saurashtra Cement Limited has shown fluctuating revenue growth with a significant decline in the most recent year. The gross profit margin remains healthy, indicating good cost management. However, net profit margins have been inconsistent with negative results in some years, suggesting volatility. EBITDA margins have also seen a downward trend, impacting overall profitability.

Balance Sheet

The company's balance sheet reflects a solid equity base with a moderate debt-to-equity ratio, indicating manageable leverage. Return on equity has been inconsistent, reflecting operational challenges. The equity ratio is stable, highlighting a strong asset base supported by equity.

Cash Flow

Cash flow analysis reveals challenges in generating consistent free cash flow, with negative figures in recent years. The operating cash flow to net income ratio indicates some inefficiencies in converting income into cash flows, posing a risk to liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.75B	15.38B	17.55B	16.45B	14.51B	6.74B
Gross Profit	11.67B	11.73B	14.08B	13.31B	4.43B	3.01B
EBITDA	816.09M	699.67M	1.44B	182.54M	784.03M	1.26B
Net Income	139.75M	69.83M	565.95M	-219.93M	231.09M	722.92M
Balance Sheet
Total Assets	0.00	16.03B	15.71B	13.57B	13.96B	7.26B
Cash, Cash Equivalents and Short-Term Investments	2.36B	2.38B	1.66B	186.26M	1.10B	1.06B
Total Debt	0.00	1.36B	850.29M	659.48M	1.04B	220.52M
Total Liabilities	-9.47B	6.55B	6.43B	4.75B	4.92B	2.03B
Stockholders Equity	9.47B	9.47B	9.28B	8.82B	9.04B	5.23B
Cash Flow
Free Cash Flow	0.00	-561.07M	866.72M	-174.88M	-543.59M	950.54M
Operating Cash Flow	0.00	302.30M	1.55B	214.52M	-81.75M	1.34B
Investing Cash Flow	0.00	-52.48M	-1.57B	324.50M	-298.63M	-1.21B
Financing Cash Flow	0.00	267.86M	26.54M	-491.17M	310.94M	-171.65M

Saurashtra Cement Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.30
• 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:SAURASHCEM, the sentiment is Negative. The current price of 83.3 is above the 20-day moving average (MA) of 64.29, above the 50-day MA of 70.73, and below the 200-day MA of 92.56, indicating a bearish trend. The MACD of -3.16 indicates Positive momentum. The RSI at 28.65 is Positive, neither overbought nor oversold. The STOCH value of 30.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SAURASHCEM.

Saurashtra Cement Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRAIL	67 Neutral	₹6.78B	14.28	―	0.41%	36.98%	-64.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AMNPLST	60 Neutral	₹7.99B	33.58	―	0.26%	-4.07%	-12.36%
SAURASHCEM	55 Neutral	₹6.55B	-22.13	―	2.39%	2.37%	55.27%
ORIENTPPR	45 Neutral	₹3.37B	-5.66	―	1.08%	-0.52%	29.48%
SHREDIGCEM	45 Neutral	₹8.95B	-48.17	―	1.66%	3.09%	-50.15%
ACL	40 Underperform	₹4.69B	-3.47	―	―	8.17%	-67.80%