Equity, Scrip Watch

India Cements Ltd – 24 July 2020

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India Cements Ltd – 24 July 2020

India Cements Ltd

Cements & Cement Products

FV – Rs 10; 52wks H/L – 140/67.9; TTQ – 2.60 Lacs; C    MP – Rs 118 (As On July 24, 2020);

Market Cap – Rs 3668 Crs

Consolidated Financials and Valuations (Amt in Rs Crs unless specified)

 

India Cement
Year Equity Capital Net Worth  Debt Total Sales PAT BV EPS P/E P/BV Promoter’s Holdings
Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Rs %
 

 FY20

310 5498 3163 5228 53 177 1.71 69 0.67 28.27
FY19 310 5246 3048 5809 25 169 0.82 161.57 0.78 28.30

India Cements Ltd asserted that the management in the company was stable and it would continue its focus on cement business. (https://www.thehindubusinessline.com/companies/india-cements-posts-loss-in-q4-full-year-on-covid-19-impact/article31904718.ece#)

Overview:

  • The India Cements Ltd. is a pioneer enterprise during the post-independence era to become a public limited company.
  • From a two plant company having a capacity of just 1.3 million tonnes in 1989, India Cements has robustly grown in the last two decades to a total capacity of 15.5 million tonnes per annum.
  • After the approval of a Scheme of Amalgamation and arrangement between Trinetra Cement Ltd and Trishul Concrete Products Ltd with The India Cements Ltd, all the cement assets have come under one roof – India Cements. India Cements has now 8 integrated cement plants in Tamil Nadu, Telangana, Andhra Pradesh and Rajasthan and two grinding units, one each in Tamil Nadu and Maharashtra.
  • The company has 13 subsidiaries controlled through shareholdings in such Companies, none of which is material.

 

The performance of the Company was also in line with the improved performance of the industry with increase in clinker production, cement production and sales which are as under:

Particulars 2019 2018 % Growth
  (In Lakh Tonnes)  
Clinker Production 91.59 80.09 14
Cement Production 123.11 111.15 11
Cement Sales 122.83 111.5 10
Clinker Sales 1.57 0.26 504
Total Sales 124.4 111.76 11

Mr. N. Srinivasan is the Vice Chairman & MD of the company.

Shareholding Pattern:

Major Holdings:

Non – Promoters No. of shares held % shares held
Subdaram Mutual Fund 7188453 2.32
ELM Park Fund Ltd 17361746 5.6
LIC 14576741 4.71
Radhakishan S Damani 33452777 10.8
Gopikishan S Damani 25601589 8.26
Radhakishan S Damani & Gopikishan S Damani 4145103 1.34
Sri Saradha Logistics Pvt. Ltd 20621843 6.66

 

Share Price Trend:

Price Snapshot:

Year Open (Rs.) High (Rs.) Low (Rs.) Close (Rs.)
2010 124.5 143.15 95 107.65
2011 107.25 112.8 62.1 65.95
2012 66.1 118.5 65.05 90.75
2013 91.3 95 43 60.1
2014 59.8 134.3 46 85.4
2015 86.5 115.8 63.6 85.4
2016 97.55 164 64 116.65
2017 117.4 226 117.4 182.6
2018 184.6 205.9 80.05 96.1
2019 96.2 116.9 67.9 71.4
2020 71.25 140 69.55 119.95

 

Financials:

The sales volume increased by 10% during the year while the gross realisation per ton of cement was lower on account of lower selling price resulting in only a marginal improvement in the top line.

Peer Comparison:

India Cement Ultratech Cements Shree Cements Birla Corporation
Price (Rs) 118 3779 21343 560
FV (Rs) 10 10 10 10
Market Cap 4081 109093 77007 4312
Equity 310 289 36 77
Net Worth 5498 39115 13169 4806
Total Debt 3163 21353 2349 3753
Sales 5228 42773 13143 7001
Net Profit 53 5810 1544 505
EPS (Rs) 1.71 201.3 428 65.6
BV (Rs) 177 1355 3650 624
PE 69 18.8 49.8 8.5
PB 0.67 2.8 5.8 0.9
Capacity (MT) 15.5 111.4 40.4 15.5
Realization Per Tonne 3650 4750 4648 4712

 

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