The India Cements Limited Fundamental Analysis (BSE: INDIACEM.BO)
The India Cements Limited Fundamental Analysis (BSE: INDIACEM.BO)
The India Cements Limited (BSE: INDIACEM.BO) shows weak financial fundamentals with a PE ratio of 124.30, profit margin of 2.06%, and ROE of 0.92%. The company generates $45.0B in annual revenue with weak year-over-year growth of -16.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -6.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze INDIACEM.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakINDIACEM.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateINDIACEM.BO shows balanced valuation metrics.
Growth Score
ModerateINDIACEM.BO shows steady but slowing expansion.
Financial Health Score
ModerateINDIACEM.BO shows balanced financial health with some risks.
Profitability Score
WeakINDIACEM.BO struggles to sustain strong margins.
Key Financial Metrics
Is INDIACEM.BO Expensive or Cheap?
P/E Ratio
INDIACEM.BO trades at 124.30 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, INDIACEM.BO's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values The India Cements Limited at 1.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 22.97 times EBITDA. This signals the market has high growth expectations.
How Well Does INDIACEM.BO Make Money?
Net Profit Margin
For every $100 in sales, The India Cements Limited keeps $2.06 as profit after all expenses.
Operating Margin
Core operations generate 3.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.92 in profit for every $100 of shareholder equity.
ROA
The India Cements Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The India Cements Limited generates limited operating cash flow of $-1.95B, signaling weaker underlying cash strength.
Free Cash Flow
The India Cements Limited generates weak or negative free cash flow of $-2.53B, restricting financial flexibility.
FCF Per Share
Each share generates $-8.16 in free cash annually.
FCF Yield
INDIACEM.BO converts -2.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
124.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.009
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How INDIACEM.BO Stacks Against Its Sector Peers
| Metric | INDIACEM.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 124.30 | 27.37 | Worse (Expensive) |
| ROE | 0.92% | 1190.00% | Weak |
| Net Margin | 2.06% | 204.00% | Weak |
| Debt/Equity | 0.00 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 3.14 | Weak Liquidity |
| ROA | 0.00% | 2758.00% | Weak |
INDIACEM.BO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The India Cements Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-20.01%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-386.45%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-166.27%
Industry Style: Cyclical, Commodity, Value
Declining