1. At a Glance
Shiva Cement reported yet another loss in Q1 FY26 (₹30 Cr), negative operating margin, and remains deeply in the red with book value just ₹1.98—but the stock trades at 20x BV. What are we even doing here?
2. Introduction with Hook
Imagine building a luxury villa… on a swamp. That’s Shiva Cement: ambitious infra, fat capex, but still stuck in a marsh of losses and red ink.
- Net Loss Q1 FY26: ₹30 Cr
- Stock Price/BV: 20x
- ROCE: -2.97%
And yet, it’s valued at ₹1,171 Cr. Mr. Market clearly loves pain.
3. Business Model (WTF Do They Even Do?)
Shiva Cement manufactures Portland Slag Cement (PSC) and Portland Pozzolana Cement (PPC) under the Mahabal brand. Their market focus:
- Odisha
- West Bengal
- Jharkhand
- Bihar
Key verticals:
- Cement production
- Clinker
- Trading of allied products
Parent Alert: It’s a subsidiary of JSW Cement, with a goal to eventually become an integrated player. But for now? It’s still crawling.
4. Financials Overview
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue | ₹320 Cr | ₹311 Cr | ₹0 Cr (!) |
| Net Profit | -₹151 Cr | -₹68 Cr | -₹80 Cr |
| ROCE | -3% | 1% | -7% |
| Borrowings | ₹1,460 Cr | ₹1,468 Cr | ₹1,334 Cr |
| Equity Capital | ₹59 Cr | ₹39 Cr | ₹39 Cr |
Yes, they went from “no sales” to ₹300+ Cr revenue—but losses scaled with it. Achievement unlocked: Revenue Up, Losses Too.
5. Valuation
CMP: ₹39.7
Book Value: ₹1.98
P/E: N/A (permanent red zone)
M-Cap: ₹1,171 Cr
Valuation Range (hypothetical):
- Based on Book Value (2x–3x): ₹4–₹6
- Based on FY26 hope: still speculative
- No DCF possible – cash flows are negative
Conclusion: Trading at 20x Book, despite 12 consecutive years of negative cash burn. Bravo, market optimism.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 loss ₹30 Cr, same old story
- Shifted HQ: From Odisha to Maharashtra—hello corporate tax benefits?
- New capex ongoing – but CWIP now down to ₹113 Cr from ₹905 Cr
- Promoter stake up to 66.44% – JSW Cement not giving up
- Zero dividend history – because there’s zero profit history
Trigger? Maybe a merger into JSW Cement someday. Or an IPO hype spillover. Till then, it’s… cemented disappointment.
7. Balance Sheet
| Item | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|
| Equity Capital | ₹59 Cr | ₹39 Cr | ₹39 Cr |
| Reserves | ₹0 Cr | -₹231 Cr | -₹162 Cr |
| Borrowings | ₹1,460 Cr | ₹1,468 Cr | ₹1,334 Cr |
| Fixed Assets | ₹1,126 Cr | ₹1,034 Cr | ₹35 Cr |
| CWIP | ₹113 Cr | ₹138 Cr | ₹905 Cr |
| Total Assets | ₹1,701 Cr | ₹1,542 Cr | ₹1,392 Cr |
Translation: Big infra built, no profits made. Still negative net worth.
8. Cash Flow – Sab Number Game Hai
| Cash Flow | FY25 | FY24 | FY23 |
|---|---|---|---|
| Operating | -₹56 Cr | ₹253 Cr | -₹110 Cr |
| Investing | -₹210 Cr | -₹254 Cr | -₹342 Cr |
| Financing | ₹261 Cr | ₹8 Cr | ₹448 Cr |
| Net Cash | -₹5 Cr | ₹7 Cr | -₹3 Cr |
One good year doesn’t fix 10 years of destruction. Also, financing cash flows doing all the heavy lifting—classic red flag.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 | FY24 | FY23 |
|---|---|---|---|
| ROCE | -3% | 1% | -7% |
| OPM | -2% | 11% | -131,100% (not a typo) |
| EPS | -₹5.12 | -₹2.32 | -₹2.73 |
| Interest Coverage | Negative | Negative | Negative |
Let’s just say—if this were a dating app profile, even the boldest investor would swipe left.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | Net Profit | EPS | OPM |
|---|---|---|---|---|
| FY23 | ₹0 Cr | -₹80 Cr | -₹2.73 | NA |
| FY24 | ₹311 Cr | -₹68 Cr | -₹2.32 | 11% |
| FY25 | ₹320 Cr | -₹151 Cr | -₹5.12 | -2% |
They turned operations on, but forgot how to earn money.
11. Peer Comparison
| Company | CMP | ROCE | ROE | EPS | OPM | M-Cap |
|---|---|---|---|---|---|---|
| UltraTech | ₹12,498 | 10.9% | 9.3% | ₹212 | 16.5% | ₹3.7L Cr |
| JK Cement | ₹6,498 | 13.9% | 13.8% | ₹118 | 17.9% | ₹50K Cr |
| Shiva Cement | ₹39.7 | -2.97% | N/A | -₹5.12 | -2% | ₹1,171 Cr |
Shiva Cement is the smallest fish in a brutal ocean full of sharks with cement-mixing arms.
12. Miscellaneous – Shareholding, Promoters
- Promoters (JSW Cement): 66.44%
- FIIs: 0.11% (accidental clicks?)
- Public: 33.37%
- No. of Shareholders: 57,597
Retail clearly hasn’t given up. Unfortunately, neither has the red ink.
13. EduInvesting Verdict™
Shiva Cement is what happens when a promising startup decides to stay in beta forever. The capex is done. The infra is ready. The losses? Still flowing like fresh cement.
It’s a dream in theory, a drag in numbers.
Until it generates consistent EBITDA or JSW pulls the trigger on a reverse merger, this remains a cement play without a foundation.
So for now: This bag of cement is… still wet.
Metadata
– Written by EduInvesting Team | July 20, 2025
– Tags: Shiva Cement, Loss-Making Stocks, Cement Sector, JSW Cement, Infra Bets
