1. At a Glance
Saurashtra Cement posted a ₹17 Cr PAT on ₹424 Cr revenue in Q1 FY26. That’s better than last year’s disaster-fest, but with a P/E of 139 and ROE barely above “bank savings interest,” the only thing really cemented here is investor confusion.
2. Introduction with Hook
Imagine if your dusty neighborhood cement godown got listed on BSE, slapped on some ISO certifications, and started quoting at 139x earnings. That’s Saurashtra Cement for you. A mid-cap with more rollercoasters than Adlabs Imagica—except here, the thrill comes from whether OPM will be 4% or -14% next quarter.
Stat Slaps:
- 3-Year Profit CAGR: -52%
- ROCE: 1.78%. Lower than your FD returns.
- Promoter Holding: Falling like monsoon cement prices.
3. Business Model (WTF Do They Even Do?)
Cement. Paint. Hope.
They sell:
- Cement types: OPC, PPC, PSC (just missing PVC for bingo)
- Brands: Hathi Cement (because elephants never forget… their margins?) and Sidhee Cement
- Paints division: Snowcem Paints (yes, they make walls pretty too)
Logistics: Road, rail, sea, and a prayer.
Target states: Gujarat, Maharashtra, Rajasthan, MP. Basically, the West + some heat.
4. Financials Overview
Let’s mix some numbers with a trowel:
| Metric | Q1 FY25 | Q1 FY26 | Growth |
|---|---|---|---|
| Revenue | ₹386 Cr | ₹424 Cr | +10% |
| EBITDA | ₹23 Cr | ₹35 Cr | +52% |
| Net Profit | ₹10 Cr | ₹17 Cr | +70% |
| PAT Margin | 2.6% | 4.0% | Meh |
Not a breakout quarter, but better than negative margins in 4 of the last 10.
5. Valuation
Let’s grab a helmet—this gets dusty:
a) P/E Valuation:
- EPS TTM = ₹1.25
- Sector P/E average = 30x (Generous)
- Fair Value = 1.25 × 30 = ₹37.5
b) P/B Ratio:
- Book Value = ₹85.2
- CMP = ₹105 → P/B = 1.23x (Not insane)
- Industry median = ~1.5x
- Fair Value = ₹85 × 1.5 = ₹127
EduInvesting FV Range: ₹40 – ₹125
CMP = ₹105 → Only justified if Snowcem suddenly becomes the next Asian Paints (spoiler: it won’t).
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 PAT up 70%: Sounds exciting till you realise base was ₹10 Cr.
- Kiln Shutdown: 20-day maintenance at Ranavav starting July 25. Dispatches to continue, but expect margin hit in Q2.
- Other Income = ₹26 Cr TTM: That’s 2x actual operating PAT. So yeah, rent > cement?
7. Balance Sheet
| Item | FY25 | Comment |
|---|---|---|
| Equity Capital | ₹111 Cr | Stable |
| Reserves | ₹836 Cr | Slightly up, thanks to PAT |
| Debt | ₹136 Cr | Not scary, but not zero either |
| Fixed Assets | ₹932 Cr | Classic cement asset bloat |
| Net Worth | ₹947 Cr | Decent, but underutilised |
Verdict: They’ve got the assets. Now just need profits to go with them.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹21 Cr | ₹32 Cr | ₹-49 Cr | ₹5 Cr |
| FY24 | ₹155 Cr | ₹-157 Cr | ₹3 Cr | ₹1 Cr |
| FY25 | ₹30 Cr | ₹-5 Cr | ₹27 Cr | ₹52 Cr |
The ₹155 Cr CFO in FY24 is a miracle—probably from working capital voodoo. FY25 cash actually improved, but don’t celebrate with a cement cake yet.
9. Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROCE | 1.78% | Barely breathing |
| ROE | 0.27% | Statistically irrelevant |
| PAT Margin | 4.0% | Below-par in cement space |
| P/E | 139x | Out of this world |
| D/E | 0.13x | Calm |
If this was a Tinder profile, it’d say: “Asset-rich, income-challenged, emotionally unavailable.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | ₹1,645 | ₹7 | ₹-22 |
| FY24 | ₹1,765 | ₹130 | ₹57 |
| FY25 | ₹1,538 | ₹44 | ₹7 |
FY24 was a one-hit wonder. FY25 = party’s over, back to mediocrity.
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| UltraTech | 77,752 | 6,910 | 52.5x |
| JK Cement | 12,424 | 916 | 55.8x |
| Saurashtra Cem. | 1,575 | 14 | 139x |
Saurashtra’s pricing like it owns the Alps, but sells sandbags in Gujarat.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2023 | Jun 2025 |
|---|---|---|
| Promoters | 67.17% | 66.69% |
| FIIs | 0.00% | 0.02% |
| DIIs | 0.12% | 0.12% |
| Public | 32.71% | 33.15% |
Promoters are slowly offloading—maybe they know what the EPS doesn’t.
13. EduInvesting Verdict™
Saurashtra Cement has the brand (Hathi), the assets, the distribution muscle—but it’s been dancing on a tightrope of low margins and inconsistent profits for years.
Q1 FY26 looks “less bad,” but let’s not confuse recovery with reinvention. The cement is wet, but not yet set.
A value trap in value investor clothing.
Metadata:
Written by EduInvesting Team | 24 July 2025
Tags: Saurashtra Cement, Cement Stocks, Q1 Results, EduInvesting Premium
