1. At a Glance
Orient Cement’s Q1 FY26 was a bag full of surprises. Revenue hit ₹866 Cr (+24% YoY) and net profit skyrocketed to ₹205 Cr (459% YoY), thanks to margin expansion (OPM 21%). Stock trades at ₹252, down 22% YoY, despite an Adani-backed ownership shake-up.
2. Introduction with Hook
Imagine a struggling indie band suddenly getting signed by a mega record label. That’s Orient Cement post-Adani (via Ambuja). Overnight, promoter stake jumped to 72.7%, and the cement bags started printing profits like never before.
3. Business Model (WTF Do They Even Do?)
- Manufacture and sell cement across southern and western India.
- Plants at Devapur (Telangana), Chittapur (Karnataka), Jalgaon (Maharashtra).
- Punchline: “They take limestone, crush it, heat it, and sell it back to you as infrastructure dreams.”
4. Financials Overview
- Revenue: ₹866 Cr (+24% YoY)
- Operating Profit: ₹183 Cr (OPM 21%)
- Net Profit: ₹205 Cr (+459% YoY)
- EPS: ₹10 (vs ₹1.79 last year)
Margins shot up like Adani’s acquisition spree.
5. Valuation
- P/E: 20x (reasonable given earnings surge).
- CMP/BV: 2.86x (premium, but not outrageous).
- Fair Value Range: ₹240 – ₹310.
“At ₹252, the market still doesn’t know if it’s buying cement or the Adani brand premium.”
6. What’s Cooking – News, Triggers, Drama
- Ambuja Cements (Adani Group) completed a ₹2,112 Cr open offer at ₹395/share, raising stake to 72.7%.
- Full board and management overhaul in April 2025.
- Integration with Adani’s cement network likely to drive synergies.
- Income Tax demand ₹19.6 Cr (small pothole on an expressway).
“This stock now dances to Adani’s tunes.”
7. Balance Sheet
| (₹ Cr) | FY24 | FY25 |
|---|---|---|
| Net Worth | 1,743 | 1,808 |
| Borrowings | 170 | 70 |
| Total Assets | 2,855 | 2,803 |
| Cash Balance | Low | Low |
“Almost debt-free, ready to leverage Adani capital if needed.”
8. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | 111 | 426 | 205 |
| Investing CF | -120 | -85 | -97 |
| Financing CF | 35 | -334 | -136 |
“Cash is steady, but capex appetite will soon need Adani-sized pockets.”
9. Ratios – Sexy or Stressy?
| Metric | Value | Comment |
|---|---|---|
| ROE | 5.1% | Improving. |
| ROCE | 8.8% | Decent. |
| OPM | 21% | Stellar. |
| P/B | 2.9x | Slightly rich. |
10. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | 2,938 | 3,185 | 2,709 |
| EBITDA | 365 | 449 | 302 |
| Net Profit | 123 | 175 | 91 |
TTM profit (₹260 Cr) already shows recovery from FY25 slump.
11. Peer Comparison
| Company | P/E | ROE | CMP/BV |
|---|---|---|---|
| UltraTech Cem. | 52x | 9.3% | 5.1x |
| Shree Cement | 100x | 5.3% | 5.2x |
| JK Cements | 55x | 13.9% | 8.2x |
| Orient Cement | 20x | 5.1% | 2.9x |
“Cheap compared to peers, but still needs ROE to catch up.”
12. Miscellaneous – Shareholding, Promoters
- Promoter (Ambuja/Adani): 72.66%
- Public: 17.7%
- FIIs: 6.65%
- DIIs: 2.95%
Now firmly under Adani control—future expansion is almost guaranteed.
13. EduInvesting Verdict™
Orient Cement is no longer just a standalone mid-cap; it’s an Adani-backed growth play. Q1 FY26 results are strong, margins fat, and the integration story is compelling.
Final Word:
“A small bag of cement, now with a billionaire’s logo. Expect fireworks, but wear a helmet.”
Written by EduInvesting Team | 26 July 2025
Tags: Orient Cement, Adani, Ambuja Acquisition, Q1 FY26, EduInvesting Premium
