Saurashtra Cement Ltd (SCL), born in 1956, is one of those veteran companies that has been pouring cement longer than most of its shareholders have been alive. Market cap? ₹1,248 Cr. Stock P/E? A sky-high 149 (for a cement company, not Zomato). Their brands “Hathi Cement” and “Snowcem Paints” sound like an odd wedding – one builds your house, the other hides the seepage. Despite revenues of ₹1,575 Cr in FY25, the company managed only ₹8 Cr PAT. Cementing shareholder patience seems to be the real product here.
2. Introduction
Imagine a cement company that sells paints too. That’s Saurashtra Cement, part of the Mehta Group. While UltraTech and Shree Cement fight to dominate India’s infrastructure story, Saurashtra Cement quietly plays the role of a mid-tier Gujarati uncle at the wedding, politely serving khandvi while the big boys down single malts.
The company operates two cement units (Ranavav and Sidheegram in Gujarat) and three paint units (Maharashtra, Rajasthan, Tamil Nadu). Cement forms 95% of revenue, paints a measly 2% — basically Snowcem is the chutney on the cement thali.
The past few years have been patchy: profits nosedived 87% TTM, ROE is stuck at 0.23%, and OPM refuses to climb past 3.5%. But hey, stock is up 46% in 6 months, because in India, even bad cement stories sometimes set like concrete.
3. Business Model – WTF Do They Even Do?
At its core, SCL makes cement under Hathi and Sidhee brands, catering to Gujarat, Maharashtra, Rajasthan, MP, and the west coast. Distribution is via bags, jumbo bags, and loose supply – basically, from the small contractor building your gali ka temple to bulk orders for industrial projects.
The paints business (Snowcem) has tried rebranding with products like OutWeather, SnowCoat, PermaCem, Damp Proof – fancy names for the same paint that still flakes during the first monsoon. Cement business = commodity slugfest, Paints = decorative dream. Together? Identity crisis.
Revenue breakup (FY24): Cement 95%, Clinker 3%, Paints 2%. No prizes for guessing which child is the favorite.
4. Financials Overview
Quarterly Snapshot (₹ Cr)
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
424
386
478
9.8%
-11.3%
EBITDA
35
23
53
52.2%
-34%
PAT
16.8
9.8
33
70.9%
-49%
EPS (₹)
1.51
0.89
2.96
69.7%
-49%
Comment: EPS swings harder than a rookie IPL batsman. YoY looks strong, but QoQ shows how fragile the cost structure is.
5. Valuation – Fair Value Range Only
P/E Method: Industry P/E ~49. EPS (TTM) = ₹1.25. Fair Value = ₹60 – ₹80.
EV/EBITDA Method: EV = ₹1,148 Cr, EBITDA ~₹73 Cr. EV/EBITDA ~15.8 vs peers ~12–14. Fair Value = ₹85 – ₹95.
DCF (optimistic): Assume 8% volume CAGR, margins normalize to 8%. Fair Value = ₹90 – ₹110.
👉 Overall Fair Value Range: ₹60 – ₹110. CMP ₹112 is slightly above fair value. Disclaimer: This range is educational only, not investment advice.
