Tam Expansion Changing Consumption
Expected: FY26MEDIUM confidence
What: Industry Demand Growth: 6.5%-7.5%
Saurashtra Cement Ltd: Is It a Deep Value Opportunity?
Weak
As of , Saurashtra Cement Ltd (Cement) has a deep value score of 28/100 (rated Weak).
Saurashtra Cement Ltd Key Facts
- PE Ratio
- 24.2x
- Market Cap
- ₹714 Cr
- Value Score
- 28/100
- Margin of Safety
- -77%
- PAT Growth YoY
- -150%
- Revenue Growth YoY
- +9%
- OPM
- 0.0%
PE: Near TroughStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💪Debt reduced 51% YoY — balance sheet strengthening
💰Trading 77% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Tam Expansion Changing Consumption
FY26MEDIUM
Key Risks
1. Intense cost pressures and inability to optimize cost structure led to a collaps
HIGH2. Implementation of new Labour Codes resulted in an exceptional cost of ₹6
MEDIUMSector-Specific Signals
Cement Capacity Utilisation103%-600 bps
Clinker Capacity Utilisation91%-500 bps
Interest Cost to Revenue1%
Employee Cost to Revenue7.8%
Key Numbers
PAT Growth YoY
-150%
Inflection Down
Revenue YoY
+9%
Inflection Up
Operating Margin
0.0%
-200 bps YoY
PE Ratio
24.2
Current Price
₹64
3Y PAT CAGR
-33%
Valuation
Significantly OvervaluedWhy Are Saurashtra Cement Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
What Are the Key Risks for Saurashtra Cement Ltd?
Earnings deceleration risks from management commentary
Intense cost pressures and inability to optimize cost structure led to a collaps
HIGHTrigger: Intense cost pressures and inability to optimize cost structure led to a collapse in operating margins to 0.23%.
Impact: PAT impact: ₹10.29 Cr Loss
Management view: Not Given
Monitor: commodity
Implementation of new Labour Codes resulted in an exceptional cost of ₹6
MEDIUMTrigger: Implementation of new Labour Codes resulted in an exceptional cost of ₹6.55 Cr this quarter.
Impact: PAT impact: ₹6.55 Cr
Management view: Compliance with new codes
Monitor: regulatory
What Did Saurashtra Cement Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹410.19 Cr
YoY +8.66%QoQ +6.37%
Revenue growth was driven by both cement and paints segments despite a challenging pricing environment.
EBITDA
₹-0.99 Cr
YoY -172.02%Margin 0.23%
Operating margins collapsed to near-zero as cost pressures and implementation of new Labour Codes offset volume gains.
PAT
₹-10.29 Cr
YoY -136.01%QoQ +6.28%
Net loss persisted due to exceptional items of ₹6.55 crores related to Labour Code implementation and high operational expenses.
Other Highlights
• Exceptional item of ₹6.55 Cr for Labour Code implementation
• Paints division continues to face operational challenges
• Tax component reported negative at -₹4.93 Cr
What Sector Metrics Matter for Saurashtra Cement Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Cement Capacity Utilisation
103%
YoY -600 bps
Why: Decline from 109% in the previous year due to market constraints and maintenance.
Clinker Capacity Utilisation
91%
YoY -500 bps
Why: Market constraints led to a decline from 96% in the previous year.
Interest Cost to Revenue
1%
Why: Company remains almost debt-free, maintaining low interest outgo.
Employee Cost to Revenue
7.8%
Why: Reflects the structural cost base prior to new Labour Code impacts.
Cement Segment Revenue
₹391.63 Cr
YoY 8.67%
Why: Primary driver of overall revenue growth despite pricing headwinds.
What Is Saurashtra Cement Ltd's Management Guidance?
Forward-looking targets from management
Management Tone: CAUTIOUS
How Fast Is Saurashtra Cement Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +9% | +2% | Inflection Up |
| PAT (Net Profit) | -150% | -33% | Inflection Down |
| OPM | 0.0% | -200 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Deep Value Stocks in Cement
Frequently Asked Questions: Saurashtra Cement Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Saurashtra Cement Ltd's deep value score?
Saurashtra Cement Ltd has a deep value score of 28/100 (rated Weak). This score is calculated from three components
- Earnings Score: 0/40 — measures PAT growth momentum across quarters
- Underperformance Score: 0/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 0/25 — operational quality (margins, revenue growth, valuation)
Is Saurashtra Cement Ltd fundamentally improving?
Saurashtra Cement Ltd's quarterly profit (PAT) growth trajectory
- Insufficient PAT data to assess improvement trend
Why is Saurashtra Cement Ltd underperforming despite good earnings?
Saurashtra Cement Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Saurashtra Cement Ltd?
Saurashtra Cement Ltd's earnings momentum is Monitoring.
- PAT YoY Growth: -150%
Is Saurashtra Cement Ltd undervalued?
Saurashtra Cement Ltd's valuation metrics
- Margin of Safety: -73% (appears overvalued)
What are the revenue and margin trends for Saurashtra Cement Ltd?
Saurashtra Cement Ltd's revenue and margin trends
- Revenue YoY: +9%
What is Saurashtra Cement Ltd's trailing twelve month (TTM) performance?
Saurashtra Cement Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹29 Cr
- TTM PAT Growth: +100.0% YoY
- TTM Revenue: ₹2,000 Cr
- TTM Revenue Growth: +9.1% YoY
- TTM Operating Margin: 4.4%
What sector does Saurashtra Cement Ltd belong to?
Saurashtra Cement Ltd key facts
- Sector: Cement
Is Saurashtra Cement Ltd a good deep value opportunity to study?
Saurashtra Cement Ltd shows limited deep value signals currently — score is 28/100 (Weak). Monitor for improvement.
- Value Score: 28/100 (Weak)
What is the bull and bear case for Saurashtra Cement Ltd?
Risk Factors (Bear Case)
- Appears overvalued despite underperformance
Which other Cement stocks are deep value opportunities?
Other deep value stocks in Cement
- Orient Cement Ltd — Score 42/100, Average
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Saurashtra Cement Ltd?
Saurashtra Cement Ltd has 1 key growth catalyst identified from recent earnings analysis
- Tam Expansion Changing Consumption
What are the key risks in Saurashtra Cement Ltd?
Saurashtra Cement Ltd has 2 key risks worth monitoring
- Intense cost pressures and inability to optimize cost structure led to a collaps
- Implementation of new Labour Codes resulted in an exceptional cost of ₹6
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.