Deccan Cements Ltd Fundamental Analysis
Deccan Cements Ltd (DECCANCE.NS) shows weak financial fundamentals with a PE ratio of 29.32, profit margin of 4.50%, and ROE of 3.89%. The company generates $6.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -49.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DECCANCE.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakDECCANCE.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateDECCANCE.NS shows balanced valuation metrics.
Growth Score
ModerateDECCANCE.NS shows steady but slowing expansion.
Financial Health Score
WeakDECCANCE.NS carries high financial risk with limited liquidity.
Profitability Score
WeakDECCANCE.NS struggles to sustain strong margins.
Key Financial Metrics
Is DECCANCE.NS Expensive or Cheap?
P/E Ratio
DECCANCE.NS trades at 29.32 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DECCANCE.NS's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Deccan Cements Ltd at 1.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.15 times EBITDA. This is generally considered low.
How Well Does DECCANCE.NS Make Money?
Net Profit Margin
For every $100 in sales, Deccan Cements Ltd keeps $4.50 as profit after all expenses.
Operating Margin
Core operations generate 6.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.89 in profit for every $100 of shareholder equity.
ROA
Deccan Cements Ltd generates $1.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Deccan Cements Ltd generates limited operating cash flow of $392.74M, signaling weaker underlying cash strength.
Free Cash Flow
Deccan Cements Ltd generates weak or negative free cash flow of $-568.27M, restricting financial flexibility.
FCF Per Share
Each share generates $-40.57 in free cash annually.
FCF Yield
DECCANCE.NS converts -6.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.003
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How DECCANCE.NS Stacks Against Its Sector Peers
| Metric | DECCANCE.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.32 | 27.70 | Neutral |
| ROE | 3.89% | 1061.00% | Weak |
| Net Margin | 4.50% | -1600.00% (disorted) | Weak |
| Debt/Equity | 1.00 | 0.60 | Weak (High Leverage) |
| Current Ratio | 0.83 | 3.22 | Weak Liquidity |
| ROA | 1.67% | 535.00% | Weak |
DECCANCE.NS outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Deccan Cements Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value