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

• Market Cap: ₹10.83B
• Dividend Yield: 1.66%
• Average Volume (3M): 26.21K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.07
• Revenue Growth: 3.09%
• EPS Growth: -50.15%
• Country: IN
• Employees: 245
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.69
• 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: 50 Neutral
• Price Target: ₹73.00 ▼(-18.97% Downside)

The overall stock score of 50 reflects significant financial challenges, including declining revenues and negative cash flow. Technical analysis indicates weak momentum, and the valuation suggests the stock is expensive. These factors collectively contribute to a cautious outlook.

Positive Factors

Manageable Leverage

A low debt-to-equity ratio (0.30) indicates manageable leverage and lower fixed interest obligations. This durable capital structure gives the company flexibility to fund maintenance or incremental capex, withstand cyclical downturns in construction, and avoid distressed refinancing pressure.

Established Market Position

A long-established brand and regional presence support stable customer relationships, dealer networks and institutional credibility. Such legacy positioning aids long-term contract wins, local pricing power, and distribution advantages versus newer entrants in regional cement markets.

Diversified Revenue Streams

Sales across bulk institutional, retail/dealer channels and government projects reduce revenue concentration risk. This structural diversification smooths demand volatility across segments, preserves utilization rates, and supports more predictable cash flow over multi-quarter cycles.

Negative Factors

Negative Free Cash Flow

Sustained negative free cash flow and sub-1 operating-cash-to-income conversion indicate earnings are not translating into liquidity. Over months this undermines capacity to fund capex, service obligations, or rebuild cash buffers without external financing, raising long-term funding risk.

Margin Compression

A steep fall in net margin signals structural pressure on pricing, cost inflation, or weakening operational efficiency. Lower margins reduce resilience to input cost shocks, limit reinvestment and impede ability to generate returns, threatening sustainable profitability over multiple quarters.

Declining Revenue Trend

Negative top-line growth suggests shrinking demand, lost share, or pricing weakness. Persistent revenue decline erodes scale economics in cement (fixed-cost heavy), increasing unit costs and pressuring margins and long-term competitive positioning unless market share or volume trends reverse.

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

Company Description

Shree Digvijay Cement Co. Ltd. (SHREDIGCEM) is a prominent player in the Indian cement industry, specializing in the production and distribution of high-quality cement products. Established in the early 20th century, the company operates in the construction sector, providing essential materials for infrastructure development, residential projects, and commercial constructions. SHREDIGCEM's core products include ordinary Portland cement, blended cement, and other specialized variants designed to meet diverse construction needs.

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

Shree Digvijay Cement Co. Ltd. faces financial challenges with declining revenues and profitability. The income statement shows a declining revenue trend and reduced margins. The balance sheet is stable with manageable leverage, but cash flow is concerning with negative free cash flow indicating potential liquidity risks.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.44B	7.25B	7.92B	7.25B	6.29B	5.01B
Gross Profit	4.89B	3.23B	2.85B	3.22B	2.94B	3.90B
EBITDA	684.92M	572.08M	1.55B	1.08B	1.21B	1.11B
Net Income	276.99M	251.88M	877.84M	580.80M	552.76M	539.60M
Balance Sheet
Total Assets	0.00	6.95B	5.35B	4.68B	4.62B	4.32B
Cash, Cash Equivalents and Short-Term Investments	1.50B	1.50B	935.44M	1.12B	834.38M	1.24B
Total Debt	0.00	1.11B	222.00K	296.00K	2.13M	2.75M
Total Liabilities	-3.64B	3.31B	1.53B	1.43B	1.50B	1.21B
Stockholders Equity	3.64B	3.64B	3.82B	3.25B	3.12B	3.11B
Cash Flow
Free Cash Flow	0.00	-482.97M	367.69M	656.01M	218.10M	670.16M
Operating Cash Flow	0.00	1.35B	956.52M	862.88M	572.74M	949.57M
Investing Cash Flow	0.00	-1.64B	-609.69M	-366.62M	-398.33M	-244.08M
Financing Cash Flow	0.00	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: Positive
• 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 84.18, above the 50-day MA of 87.79, and above the 200-day MA of 85.11, indicating a bearish trend. The MACD of -4.46 indicates Positive momentum. The RSI at 16.69 is Positive, neither overbought nor oversold. The STOCH value of 10.01 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	53 Neutral	₹7.95B	23.11	―	2.39%	2.37%	55.27%
SHREDIGCEM	50 Neutral	₹10.83B	28.84	―	1.66%	3.09%	-50.15%
NCLIND	49 Neutral	₹8.29B	16.55	―	1.52%	-16.46%	-21.60%
DECCANCE	48 Neutral	₹8.81B	26.56	―	0.08%	-28.32%	93.44%
SANGHIIND	44 Neutral	₹15.62B	-3.68	―	―	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.

Shree Digvijay Cement’s Appeal Partially Allowed by Regional Director

Shree Digvijay Cement Co. Ltd. announced that its appeal against an order by the Registrar of Companies was partially allowed by the Regional Director, North-Western Region. The appeal related to alleged non-compliance with certain provisions of the Companies Act, 2013, concerning shareholding disclosures. The Regional Director’s order resulted in the dropping of certain penalties, but the company may seek further remedies. The company stated that there are no material impacts on its financial or operational activities due to this decision.