Saurashtra Cement Limited (SAURASHCEM) AI Stock Analysis

• Market Cap: ₹8.60B
• Dividend Yield: 2.39%
• Average Volume (3M): 12.84K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 1.18
• Revenue Growth: 2.37%
• EPS Growth: 55.27%
• Country: IN
• Employees: 790
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -0.99
• Shares Outstanding: 111,253,160
• 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: 53 Neutral
• Price Target: ₹94.00 ▲(12.85% Upside)

The overall stock score is primarily influenced by mixed financial performance and bearish technical indicators. The stock's overvaluation further impacts its attractiveness, despite a decent dividend yield. Addressing operational inefficiencies and improving cash flow generation are crucial for enhancing financial stability.

Positive Factors

Gross Profit Margin

A strong gross profit margin suggests effective cost management, which can support long-term profitability and competitive pricing strategies.

Stable Equity Base

A stable equity base with manageable leverage indicates financial stability, providing a foundation for future growth and resilience against market fluctuations.

Strategic Market Position

Strategic location of manufacturing facilities enhances market reach and customer accessibility, supporting sustained revenue generation and market expansion.

Negative Factors

Revenue Decline

A significant decline in revenue growth indicates potential challenges in market demand or competitive pressures, which could impact long-term financial performance.

Inconsistent Profitability

Inconsistent profitability and negative net profit margins suggest volatility in earnings, which can undermine investor confidence and affect future investment.

Cash Flow Challenges

Challenges in generating consistent free cash flow pose risks to liquidity and financial flexibility, potentially limiting the company's ability to invest in growth opportunities.

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

Saurashtra Cement Limited shows a mixed financial performance. The company maintains a healthy gross profit margin and a stable equity base, but faces challenges with inconsistent profitability and cash flow issues. Operational inefficiencies are evident, impacting financial stability.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• RSI: Neutral
• STOCH: Positive

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 82.00, below the 50-day MA of 88.50, and below the 200-day MA of 96.53, indicating a bearish trend. The MACD of -2.43 indicates Negative momentum. The RSI at 30.97 is Neutral, neither overbought nor oversold. The STOCH value of 12.82 is Positive, 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	₹7.66B	36.51	―	0.41%	36.98%	-64.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AMNPLST	60 Neutral	₹10.56B	29.21	―	0.26%	-4.07%	-12.36%
SAURASHCEM	53 Neutral	₹8.60B	24.98	―	2.39%	2.37%	55.27%
SHREDIGCEM	50 Neutral	₹13.48B	35.92	―	1.66%	3.09%	-50.15%
ORIENTPPR	43 Neutral	₹4.78B	-18.99	―	1.08%	-0.52%	29.48%
ACL	41 Neutral	₹6.67B	-4.04	―	―	8.17%	-67.80%

Saurashtra Cement Limited Corporate Events

Saurashtra Cement Limited Reports Q2 2025 Financial Results

Saurashtra Cement Limited has announced its unaudited financial results for the second quarter and half-year ending September 30, 2025. The results, reviewed by the Audit Committee and approved by the Board of Directors, indicate a challenging period with a net loss reported. These results, published in major newspapers, highlight the company’s current financial standing and are available on the company’s and stock exchanges’ websites. This announcement may impact stakeholders’ perception of the company’s financial health and its market positioning in the cement industry.

Saurashtra Cement Receives Rs. 16.56 Crore Tax Demand Order

Saurashtra Cement Limited has received a Demand Order from the Office of the Commissioner of Central Excise & CGST, Bhavnagar, for the financial years 2018-19 to 2023-24. The order demands an aggregate amount of Rs. 16.56 Crores, including tax and penalties, for the ineligible availing and utilization of Input Tax Credit. The company is assessing the situation and considering filing an appeal, as it believes the demand is not maintainable and does not foresee any significant impact on its financials or operations.