At a Glance
Panyam Cement went from making cement to becoming dust itself — dragged into NCLT in 2020 and rescued by a revival plan in 2021. But 3 years later, it’s still burning more cash than coal. Can this zombie factory turn solid again, or is this just cemented chaos?
1. 🧟♂️ Introduction: Dead Company Walking?
Remember that one guy in college who promised he’d “change after this semester”? That’s Panyam Cement — except instead of assignments, it missed entire decades of financial performance.
Once a buzzing cement plant in Andhra Pradesh, Panyam was:
- Dragged to NCLT in May 2020 🧾
- Slapped with a Resolution Plan in July 2021 👨⚖️
- Handed back to a new board in Jan 2023 🏛️
And now?
It’s making ₹20 Cr a quarter in revenue, burning ₹30 Cr in expenses, and asking you to believe this is a comeback.
2. 🧱 WTF Do They Even Do?
- Sector: Cement manufacturing
- Location: Kurnool, Andhra Pradesh
- Plant Status: Restarted clinker production just last week (June 27, 2025)
- Pre-NCLT: Used to do ₹100–200 Cr in revenue
- During NCLT: Zilch
- Post-Resolution: Slow restart, but bleeding cash
So technically yes, they do make cement again — but currently burning through it faster than selling.
3. 📉 Financials: Falling Harder Than a Sack of Clinker
Recent Quarterly Snapshot
| Quarter | Sales (₹ Cr) | Expenses (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| Dec ‘23 | 46 | 54 | -15 | -18.9 |
| Mar ‘24 | 39 | 47 | -15 | -19.3 |
| Jun ‘24 | 32 | 43 | -18 | -22.5 |
| Sep ‘24 | 30 | 43 | -20 | -25.2 |
| Dec ‘24 | 21 | 32 | -19 | -24.0 |
💀 Consistent negative EPS
💸 Losses every quarter
🔥 Cash burn = constant
4. 💸 Valuation: Hope Trading at ₹170?
| Metric | Value |
|---|---|
| Market Cap | ₹136 Cr |
| CMP | ₹170 |
| Book Value | ₹-259 |
| Price / Book | N/A (because it’s negative) |
| ROCE | -22.6% |
| EPS (TTM) | -₹91 |
Yes, you read that right. This company has a negative book value, i.e., liabilities > assets.
And it still trades at ₹170/share.
That’s not investing. That’s faith healing.
5. 🔥 What’s Cooking: Some Cement, Lots of Drama
- 🏗️ Clinker production resumed — June 27, 2025.
- 📆 Board meetings rescheduled 3 times due to director no-shows.
- 🎭 Promoters took 95% stake after NCLT revival.
- 📉 Yet, stock has fallen 29% in 1 year despite “revival hopes”.
Think of this stock as the TVF Aspirants of cement — a lot of hustle, but no UPSC result yet.
6. 💀 Balance Sheet: Black Hole Edition
| FY24 Snapshot | Value (₹ Cr) |
|---|---|
| Equity Capital | ₹8 |
| Reserves | -₹177 |
| Borrowings | ₹349 |
| Total Liabilities | ₹207 |
| Fixed Assets | ₹117 |
| Cash Flow from Ops | -₹38 |
| Cash Flow from Fin | ₹111 |
🚨 Key Issue: Borrowings up, reserves deeply negative, and equity eroded.
You’re basically looking at a company running on debt + optimism.
7. 💸 Cash Flow: More Out than In
| FY | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | -₹34 | -₹68 | ₹97 | -₹5 |
| FY24 | -₹38 | -₹75 | ₹111 | -₹2 |
They’re literally borrowing just to keep lights on — and maybe pay fuel bills.
8. 📊 Ratios: Ugly Is an Understatement
- ROCE (FY24): -23%
- Working Capital Days: 8 (🤏 okayish)
- OPM: -34%
- Net Profit Margin: 🤷♂️ don’t ask
9. 🧾 P&L Breakdown
| FY | Sales (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|
| FY22 | ₹0 | ₹203 (one-off gain) | ₹5,054 |
| FY23 | ₹39 | -₹60 | -₹75 |
| FY24 | ₹120 | -₹55 | -₹69 |
| TTM | ₹122 | -₹73 | -₹91 |
⚠️ FY22 was distorted by NCLT resolution accounting. Ignore it. Reality resumed in FY23.
10. 🧠 Peer Comparison: Cement vs Sentiment
| Company | CMP (₹) | ROCE (%) | OPM (%) | PE | Book Value (₹) | P/B |
|---|---|---|---|---|---|---|
| ACC | ₹1,956 | 17.4 | 14.1 | 15.9 | ₹1,000+ | ~1.9 |
| JK Cement | ₹6,347 | 14.0 | 17.1 | 61.7 | ₹788 | 8.0 |
| Dalmia Bharat | ₹2,209 | 5.6 | 17.2 | 59.0 | ₹923 | 2.4 |
| Panyam Cement | ₹170 | -22.6 | -34% | NA | -259 | ❌ |
So yeah, even the worst-performing large-cap cement stock is an ultra-premium bag of Ultratech compared to this.
11. 🧑🤝🧑 Shareholding: Promoters Took Over
| Category | % Holding (Mar ’25) |
|---|---|
| Promoters | 95.00% |
| Public | 4.96% |
| DIIs | 0.03% |
That’s right. Retail owns less than 5% of this company. Which also means:
- Float is tiny
- Volatility is massive
- Operator manipulation is very likely
12. 🧠 Miscellaneous: Credit Ratings & Delays
- ❗ Credit Rating: Multiple updates from Infomerics in 2023-24. Unclear status.
- ⏳ Board Meetings: Constantly postponed — citing “director unavailability”
- 📉 Contingent Liabilities: ₹115 Cr
13. 💀 EduInvesting Verdict™
This is a classic NCLT-to-nowhere play.
It has:
- High debt
- Negative reserves
- No profitability
- And just resumed production this week
Yet it’s trading at ₹170 with a ₹136 Cr market cap.
🎭 This is less of a business, more of a speculative theme stock.
If you’re buying this, you’re not betting on cement. You’re betting on a turnaround Hail Mary that hasn’t scored in 4 years.
💰 Fair Value Range: ₹20 – ₹40/share
Why?
- Discounted asset value (₹120 Cr revenue, no profit, ₹349 Cr debt)
- No profits expected soon
- Negative equity base
Unless a large buyer, PSU, or merger shows up — there’s no fundamental upside above ₹40.
✍️ Written by Prashant | 📅 July 3, 2025
Tags: Panyam Cement, NCLT stock, revival play, turnaround stocks, operator-driven stocks, EduInvesting
