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Saurashtra Cement
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Promoted in 1956, Saurashtra Cement Ltd (SCL), was set up to manufacture cement by the semi-dry process. In 1960, the Mehta group, headed by Nanji Kalidas Mehta invested Rs 50 lac in SCL. The plant is located at Ranavav, Gujarat. In 1980, the group was invited by the Government of Gujarat to invest in a joint venture, Cement Corporation of Gujarat, now called Gujarat Sidhee Cement (GSCL). The Mehta group spans over seven countries with interests in sugar, engineering, cement, electrical cables, power, alcohol, etc. SCL was the first BIFR case to be turned around without a rehabilitation package/assistance. It enjoys a market share of 23% in Gujarat. In Oct.'93, it issued rights shares and PCDs to increase its capacity from 8.63 lac tpa to 11.29 lac tpa. At present, the company is engaged in the business of manufacturing and selling of Cement and Paints. It has entered into a technical collaboration with Fuller, US, to provide designs for plant equipment. It holds a mining lease near Ranavav for limestone quarrying.
The Company commenced a 7500 tonne silo for the bulk loading of cement at its jetty in the Porbandar Port during 2004 and was made fully operational in 2006. It installed second silo having a capacity of 8000 MT at the jetty along with mechanized facility to load cement in 2006. The Company's net worth as at 30th June, 2005 had been completely eroded and the Hon'ble BIFR declared the Company as a sick industrial undertaking vide its order dated 21st September 2006.
The Company had five wholly owned subsidiary companies. Out of these five subsidiaries, four companies namely Pranay Holdings Limited, Prachit Holdings Limited, Ria Holdings Limited and Reeti Investments Private Limited accordingly merged with the Company through the Scheme of Amalgamation and the said Amalgamation became effective from 1st April 2018. Similarly, Parsec Enterprises Private Limited, a promoter group company, got amalgamated with Company effective from April 01, 2020.
The Company acquired the paints business of Snowcem Paints Pvt. Ltd., including the brands owned by them on a slump sale basis during FY 2021-22. Further, it embarked on a digital transformation journey under 'Project Parivartan'. In 2023, the Scheme of Amalgamation of Gujarat Sidhee Cement Limited (GSCL) with the Company became effective from 30th March 2023. In terms of the said Scheme of Amalgamation, the Company issued and allotted 5,40,09,641 new equity shares of Rs 10/- each fully paid up to the shareholders of erstwhile Gujarat Sidhee Cement Limited on April 26, 2023 in the merger ratio of 62:100.
Saurashtra Cement share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Saurashtra Cement indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Saurashtra Cement is valued compared to its competitors.
Saurashtra Cement PE ratio helps investors understand what is the market value of each stock compared to Saurashtra Cement 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Saurashtra Cement evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Saurashtra Cement generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Saurashtra Cement in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Saurashtra Cement shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Saurashtra Cement compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Saurashtra Cement over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Saurashtra Cement helps investors get an insight into when they can enter or exit the stock. Key components of Saurashtra Cement Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Saurashtra Cement shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Saurashtra Cement ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Saurashtra Cement provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Saurashtra Cement highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Saurashtra Cement .
The balance sheet presents a snapshot of Saurashtra Cement ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.