1. At a Glance

Deccan Cements is a mid-cap cement maker with an identity crisis – part cement manufacturer, part power producer, fully priced like it’s sitting on a gold mine. FY25 saw ₹505 Cr in sales, ₹20 Cr PAT, and a P/E north of 73. In other words: revenue like a small-town builder, valuation like a startup that just added “AI” to its name.

2. Introduction

Cement is supposed to be boring – steady demand, incremental capacity additions, boring valuations. But Deccan Cements apparently missed that memo.

Born in 1979 and based in Telangana, the company produces all major grades – OPC, PPC, PSC, plus specialty variants like sulphate-resistant and oil well cement. It also has hydel and wind power assets, because why not diversify into something equally capital-heavy?

But here’s the drama – sales growth over the past 5 years is actuallynegative (-1%), profit growth is even worse (-35% CAGR), ROCE has fallen to1.76%, yet the stock has shot up over 62% in one year. Either there’s a turnaround brewing… or this is pure liquidity-fuelled FOMO.

3. Business Model (WTF Do They Even Do?)

Deccan’s model is textbook cement:

• Products:OPC (33/43/53 grades), PPC, PSC, specialty cement (rapid hardening, high alumina, oil well cement).
• Markets:Construction, infrastructure, marine works, coastal projects.
• Capacity:Small compared to the giants – think a scooter in a Ducati race.
• Side Hustle:Power generation from hydel and wind, partly for captive use, partly sold to the grid.

Revenue split: Cement drives the bulk, power is supplementary. Competitive edge? Mostly regional pricing and specialty grades in niche