1. At a Glance
Shree Digvijay Cement Co. Ltd is one of those companies that proudly carries a 1944 vintage tag while behaving like it’s perpetually stuck in a cement price cycle hangover. As of the latest close, the stock trades at ₹72, down ~20% in three months, with a market cap of ₹1,065 Cr. On paper, the valuation doesn’t look cheap-cheap: P/E ~30, P/B ~2.9, ROCE ~8.7%, ROE ~6.8%.
And then Q3 FY26 happened. Revenue came in at ₹183 Cr, while PAT slipped into a ₹6.97 Cr loss. Yes, a full-blown quarterly loss in a business that sells grey powder people literally cannot live without. Add to that:
- CEO & MD resigned on 6 Feb 2026
- True North exited ~45% stake in Dec 2025
- India Resurgence Fund is now the new boss (pending open offer completion)
- ₹250 Cr brownfield capex underway
So we have a 80-year-old cement company, promoter exit, PE fund entry, loss-making quarter, and a big expansion plan — all in one pot. Sounds like a masala Bollywood plot. Curious already? Good. Let’s dig deeper.
2. Introduction – Legacy Cement Meets Private Equity Reality
Shree Digvijay Cement is not new to India’s construction story. Incorporated in 1944, it has seen British India, License Raj, liberalization, infrastructure booms, busts, and now ESG PowerPoints.
But history doesn’t pay EMIs. Current performance does.
SDCCL operates a single integrated plant at Sikka (near Jamnagar) with 1.5 MTPA cement capacity, running at ~90% utilisation in FY24. That’s actually decent. The brand “Kamal Cement” enjoys a strong regional recall in Gujarat and nearby markets, especially for SRPC and Oil Well Cement, where coastal and oil & gas applications need specialized products.
Yet despite decent utilization and niche products, profitability remains… fragile. Cement is brutally cyclical, pricing power is limited, and logistics costs can wipe margins faster than a monsoon wipes site progress.
To make things spicier, True North, the long-time PE promoter, decided to exit in Dec 2025, selling ~45% stake to India Resurgence Fund. The management baton also slipped — the MD resigned just days ago.
So the question is simple:
Is this a transition phase before a turnaround, or a classic PE musical chair where retail ends up holding
the chair?
3. Business Model – WTF Do They Even Do?
At its core, SDCCL does one thing: make cement and move it efficiently.
Cement Products
The company sells cement in:
- 50 kg bags
- 1.5 MT jumbo bags
- Bulk cement (direct truck loading)
Its product portfolio includes:
- PPC Cement – mass market, margin-thin, volume-heavy
- OPC 53 Grade – standard RCC/PCC construction
- SRPC Cement – coastal & underground construction
- Oil Well Cement – niche, higher entry barriers
- “Cement Ka Sardar” – premium branding attempt
The differentiation? Not volume scale like UltraTech, but location advantage + captive port + niche cement.
Logistics Edge
SDCCL owns a captive seaport capable of handling 3,000–5,000 DWT vessels. This is not decorative infrastructure — it helps:
- Import coal/petcoke
- Export clinker/cement
- Control freight costs
There’s also a wholly owned subsidiary: SDCCL Logistics Ltd, handling transport and related activities.
Still, let’s be honest. This is not a sexy tech platform. It’s cement. Heavy, low-margin, high fixed cost, and extremely dependent on pricing discipline in the industry.
4. Financials Overview – When Grey Powder Turns Red
Quarterly Comparison Table (₹ Crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 183.34 | 186.76 | 161.35 | -1.83% | +13.7% |
| EBITDA | 2.45 | -0.15 | 19.42 | NA | -87.4% |
| PAT | -6.97 | -4.83 | 10.23 | NA | -168% |
| EPS (₹) | -0.47 | -0.33 | 0.69 | NA | -168% |
Commentary:
Revenue barely moved. Costs did. EBITDA collapsed. Depreciation jumped. Interest spiked. Result? A clean quarterly loss.
This is not a demand collapse problem. It’s a cost structure + pricing + expansion-phase stress problem.
And yes, before anyone asks — EPS annualisation rules don’t apply meaningfully
