Shree Digvijay Cement Co. Ltd. (SHREDIGCEM) AI Stock Analysis

• Market Cap: ₹9.34B
• Dividend Yield: 1.66%
• Average Volume (3M): 26.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 3.09%
• EPS Growth: -50.15%
• Country: IN
• Employees: 245
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -0.47
• Shares Outstanding: 147,869,280
• 10 Day Avg. Volume: 20,595
• 30 Day Avg. Volume: 26,206
• PEG Ratio: -0.58
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 1.44
• P/FCF Ratio: -21.56
• 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: 45 Neutral
• Price Target: ₹60.00 ▼(-33.40% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held down primarily by weakening financial performance, especially deteriorating margins and negative free cash flow. Technicals are also broadly bearish (below key moving averages and negative MACD), though oversold readings modestly offset. Valuation is mixed: a reasonable dividend yield is outweighed by a negative P/E that reflects strained earnings quality.

Positive Factors

Manageable leverage

A debt-to-equity of 0.30 implies conservative leverage for a cyclical cement business. Manageable debt supports financing flexibility for maintenance capex and working capital during demand troughs, preserving solvency and enabling strategic investments without excessive refinancing risk over months.

Diversified sales channels

Revenue sourced from bulk, retail, dealers and government contracts reduces customer concentration and smooths cyclicality. Structural diversification across segments helps stabilize cash flows and order visibility, supporting medium-term revenue resilience through infrastructure and residential cycles.

Established market presence

A longstanding presence and a portfolio including ordinary Portland and blended cements underpin brand recognition, dealer relationships and institutional ties. These durable competitive advantages support steady demand, distribution reach and retention of market share over the coming months.

Negative Factors

Eroding profitability

A sharp fall in net margin from ~11% to ~3.5% indicates material margin compression likely from cost inflation or lost pricing power. Persistently low margins reduce reinvestment and buffer against downturns, weakening competitiveness and long-term ability to fund growth or dividends.

Negative free cash flow

Negative free cash flow and an OCF-to-net-income ratio of 0.61 show earnings are not converting into cash efficiently. This constrains capex, working capital and debt reduction, increases reliance on external funding, and represents a structural liquidity risk over the medium term.

Weaker return on equity

A lower ROE (~6.9%) signals diminished efficiency deploying equity into profitable operations, possibly reflecting margin pressure or underutilized assets. Persistently weak ROE makes it harder to justify reinvestment, attract capital, or sustain shareholder returns without operational improvements.

Shree Digvijay Cement Co. Ltd. Business Overview & Revenue Model

Company Description

Shree Digvijay Cement Company Ltd., together with its subsidiary, engages in the manufacturing and selling cement in India. It offers ordinary Portland cement, Portland Pozzolana cement, sulphate resisting Portland cement, oil well cement, and other special cements under the KAMAL CEMENT and CEMENT KA SARDAR brands. The company is also involved in the transportation, warehousing, fulfillment, logistics, business intelligence, technology, and supply chain solutions; and provision of break-bulk cargo import and export, chartering and freight forwarding solutions, and commodity trading services. In addition, it provides value added services, which include concrete mix design and cube testing facility services; non-destructive testing of concrete and testing facilities for building materials; training programs for masons, site supervisors, and engineers on good construction practices; mobile concrete lab services; field visits by qualified civil engineers; educating individual household builders on various aspects of building material and construction; and other services. The company was founded in 1942 and is based in Jamnagar, India. Shree Digvijay Cement Company Ltd. is a subsidiary of True North Fund VI LLP.

How the Company Makes Money

Shree Digvijay Cement Co. Ltd. generates revenue primarily through the sale of its cement products to various segments, including residential builders, commercial contractors, and government projects. The company's revenue model is based on direct sales to customers, as well as through distribution channels and dealers. Key revenue streams include bulk sales to large construction firms and retail sales to smaller businesses and individual customers. Additionally, partnerships with construction companies and government contracts provide significant income, while strategic pricing and cost management further enhance profitability. The company's focus on quality and innovation in cement production also helps maintain a competitive edge in the market, contributing to sustained earnings.

Shree Digvijay Cement Co. Ltd. Financial Statement Overview

Summary

Financials are pressured by declining revenue (-1.08%), sharply lower profitability (net margin down to 3.47% from 11.08%), and negative free cash flow. The balance sheet is comparatively steadier with manageable leverage (debt-to-equity 0.30), but reduced ROE (6.92%) signals weaker shareholder return generation.

Income Statement

The income statement shows a declining revenue trend with a negative growth rate of -1.08% in the latest year. Margins have also decreased significantly, with the net profit margin dropping to 3.47% from 11.08% the previous year. This indicates challenges in maintaining profitability and cost control.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.30, indicating manageable leverage. However, the return on equity has decreased to 6.92%, suggesting reduced efficiency in generating returns for shareholders. The equity ratio remains stable, showing a solid capital structure.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow, which is negative in the latest year. The operating cash flow to net income ratio is 0.61, indicating operational challenges. The negative free cash flow to net income ratio highlights potential liquidity issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.60B	7.25B	7.92B	7.25B	6.29B	5.01B
Gross Profit	4.40B	3.23B	2.85B	3.22B	2.94B	3.90B
EBITDA	800.19M	572.08M	1.55B	1.08B	1.21B	1.11B
Net Income	375.27M	251.88M	877.84M	580.80M	552.76M	539.60M
Balance Sheet
Total Assets	6.77B	6.95B	5.35B	4.68B	4.62B	4.32B
Cash, Cash Equivalents and Short-Term Investments	64.09M	1.50B	935.44M	1.12B	834.38M	1.24B
Total Debt	1.43B	1.11B	222.00K	296.00K	2.13M	2.75M
Total Liabilities	3.12B	3.31B	1.53B	1.43B	1.50B	1.21B
Stockholders Equity	3.65B	3.64B	3.82B	3.25B	3.12B	3.11B
Cash Flow
Free Cash Flow	-1.20B	-482.97M	367.69M	656.01M	218.10M	670.16M
Operating Cash Flow	-528.92M	1.35B	956.52M	862.88M	572.74M	949.57M
Investing Cash Flow	-5.92M	-1.64B	-609.69M	-366.62M	-398.33M	-244.08M
Financing Cash Flow	96.37M	651.52M	-340.61M	-497.63M	-559.82M	-211.83M

Shree Digvijay Cement Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 90.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHREDIGCEM, the sentiment is Negative. The current price of 90.09 is above the 20-day moving average (MA) of 68.15, above the 50-day MA of 76.09, and above the 200-day MA of 83.86, indicating a bearish trend. The MACD of -3.42 indicates Positive momentum. The RSI at 30.54 is Neutral, neither overbought nor oversold. The STOCH value of 19.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHREDIGCEM.

Shree Digvijay Cement Co. 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%
SAURASHCEM	55 Neutral	₹6.61B	-22.13	―	2.39%	2.37%	55.27%
NCLIND	49 Neutral	₹7.82B	17.17	―	1.52%	-16.46%	-21.60%
DECCANCE	48 Neutral	₹9.13B	-467.16	―	0.08%	-28.32%	93.44%
SHREDIGCEM	45 Neutral	₹9.34B	-48.17	―	1.66%	3.09%	-50.15%
SANGHIIND	44 Neutral	₹13.19B	-3.63	―	―	32.54%	19.65%

Shree Digvijay Cement Co. Ltd. Corporate Events

Shree Digvijay Cement Panel Issues Recommendations on India Resurgence Open Offer

Shree Digvijay Cement Company Limited has informed the exchanges that its Committee of Independent Directors has issued written, reasoned recommendations for public shareholders regarding an open offer by India Resurgence Fund schemes to acquire up to 38,543,837 equity shares at Rs 92.20 per share. The company has published these recommendations in several major newspapers across English, Hindi, Marathi, and Gujarati, and made them available on its website, providing guidance to minority investors on how to evaluate the proposed acquisition in line with SEBI’s Substantial Acquisition of Shares and Takeover Regulations.

Shree Digvijay Cement Closes Trading Window Ahead of Q3 FY26 Results

Shree Digvijay Cement Co. Ltd. has announced the closure of its trading window for designated persons and their immediate relatives from 1 January 2026 until 48 hours after the publication of its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025. The move, taken in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, is a routine compliance step aimed at preventing insider trading and ensuring fair disclosure to all market participants ahead of the upcoming financial results.

Shree Digvijay Cement Revamps Board After 45% Stake Sale to India Resurgence Funds

Shree Digvijay Cement Co. Ltd. has announced a significant change in its shareholding and board composition following the completion of a major equity transaction, under which India Resurgence Fund entities have acquired 6,67,25,311 equity shares, representing about 45.01% of the company’s share capital, from True North Fund VI LLP. Consequent to this change in control, non-executive, non-independent director Pramod Kabra has resigned from the board effective 18 December 2025, and the board has appointed Shitij Kale as an additional non-executive, non-independent director and nominee of the new investor group, subject to shareholder approval, while confirming that overall board and committee structures remain compliant with the Companies Act and listing regulations, signaling continuity in governance amid the ownership shift.

Shree Digvijay Cement Reshapes Board After 45% Stake Acquisition by India Resurgence Funds

Shree Digvijay Cement Co. Ltd. has announced a significant change in its shareholding and board composition following the completion of a major stake transfer from True North Fund VI LLP to a consortium of India Resurgence Fund entities. The purchasers have acquired 45.01% of the company’s share capital, triggering board changes that underscore a shift in strategic influence toward the new investor group while maintaining regulatory compliance. In line with this transition, non-executive, non-independent director Pramod Kabra has resigned from the board with effect from December 18, 2025, and the board has appointed Shitij Kale as an additional non-executive, non-independent director and nominee of the new purchasers, subject to shareholder approval. The company stated that the new director is not debarred by any regulatory authority, and it has reconstituted its board committees to reflect the updated directorships, ensuring continued compliance with the Companies Act, 2013 and listing regulations, with implications for governance and oversight under the new shareholder structure.

Shree Digvijay Cement Co. Announces Amendment to Share Purchase Agreement

Shree Digvijay Cement Co. Ltd. has announced an amendment to its Share Purchase Agreement (SPA) initially executed between its current promoter, True North Fund VI LLP, and the India Resurgence Fund entities. The amendment signifies a step toward the transfer of ownership of 50.10% of the company’s share capital to the India Resurgence Fund entities, which could have significant implications on the company’s operational governance and strategic focus, signaling potential shifts in stakeholder dynamics and market positioning.