Tam Expansion Changing Consumption
Expected: FY26MEDIUM confidence
What: Industry Demand Growth: 6.5%-7.5%
Saurashtra Cement Ltd: Stock Analysis & Fundamentals
Updated this weekSaurashtra Cement Ltd (Cement) — fundamental analysis, earnings data, and key metrics. PE: 24.2. ROE: 0.2%. This stock is not currently in the Nifty 500 momentum outperformers list.
Saurashtra Cement Ltd Key Facts
What's Happening
💪Debt reduced 51% YoY — balance sheet strengthening
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
Current Price
₹64
Market Cap
714 Cr
Valuation
N/AWhy 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
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 Top Cement Stocks Beating Nifty 500
Frequently Asked Questions: Saurashtra Cement Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Saurashtra Cement Ltd's latest quarterly results?
Saurashtra Cement Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: -150.0%
- Revenue Growth YoY: +8.5%
- Operating Margin: 0.0%
What is Saurashtra Cement Ltd's current PE ratio?
Saurashtra Cement Ltd's current PE ratio is 24.2x.
- Current PE: 24.2x
- Market Cap: 714 Cr
What is Saurashtra Cement Ltd's price-to-book ratio?
Saurashtra Cement Ltd's price-to-book ratio is 0.8x.
- Price-to-Book (P/B): 0.8x
- Book Value per Share: ₹86
- Current Price: ₹64
Is Saurashtra Cement Ltd a fundamentally strong company?
Saurashtra Cement Ltd's fundamental strength based on key financial ratios
- Return on Capital (ROCE): 2.0%
Is Saurashtra Cement Ltd debt free?
Saurashtra Cement Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹136 Cr
What is Saurashtra Cement Ltd's return on equity (ROE) and ROCE?
Saurashtra Cement Ltd's return ratios over recent years
- FY2023: ROCE -2.0%
- FY2024: ROCE 12.0%
- FY2025: ROCE 2.0%
Is Saurashtra Cement Ltd's cash flow positive?
Saurashtra Cement Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹30 Cr
- Free Cash Flow (FCF): ₹25 Cr
- CFO/PAT Ratio: 429% (strong cash conversion)
What is Saurashtra Cement Ltd's dividend yield?
Saurashtra Cement Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹64
Who holds Saurashtra Cement Ltd shares — promoters, FII, DII?
Saurashtra Cement Ltd's shareholding pattern (Mar 2026)
- Promoters: 66.6%
- FII (Foreign): 0.2%
- DII (Domestic): 0.1%
- Public: 33.1%
Is promoter holding increasing or decreasing in Saurashtra Cement Ltd?
Saurashtra Cement Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 66.6% (Mar 2026)
- Previous Quarter: 66.7% (Dec 2025)
- Change: -0.07% (decreasing — worth monitoring)
Is Saurashtra Cement Ltd a new momentum entry or an established outperformer?
Saurashtra Cement Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
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 — Increased government infrastructure spending and affordable housing targets (30 million houses by 2030) provide a demand tailwind.
What are the key risks in Saurashtra Cement Ltd?
Saurashtra Cement Ltd has 2 key risks worth monitoring
- [HIGH] Intense cost pressures and inability to optimize cost structure led to a collaps — Intense cost pressures and inability to optimize cost structure led to a collapse in operating margins to 0.23%.
- [MEDIUM] Implementation of new Labour Codes resulted in an exceptional cost of ₹6 — Implementation of new Labour Codes resulted in an exceptional cost of ₹6.55 Cr this quarter.
What is Saurashtra Cement Ltd's management guidance for growth?
Saurashtra Cement Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
- Capex plan: Not Given for Not Given
- Management tone: cautious
What sector-specific metrics matter most for Saurashtra Cement Ltd?
Saurashtra Cement Ltd's most important sub-sector-specific KPIs from the latest concall
- Cement Capacity Utilisation: 103% (YoY -600 bps) — Decline from 109% in the previous year due to market constraints and maintenance.
- Clinker Capacity Utilisation: 91% (YoY -500 bps) — Market constraints led to a decline from 96% in the previous year.
- Interest Cost to Revenue: 1% — Company remains almost debt-free, maintaining low interest outgo.
- Employee Cost to Revenue: 7.8% — Reflects the structural cost base prior to new Labour Code impacts.
- Cement Segment Revenue: ₹391.63 Cr (YoY 8.67%) — Primary driver of overall revenue growth despite pricing headwinds.
Is Saurashtra Cement Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Saurashtra Cement Ltd may be worth studying
- Cash flow is positive — CFO ₹30 Cr
What is the investment thesis for Saurashtra Cement Ltd?
Saurashtra Cement Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Tam Expansion Changing Consumption
Risk Factors (Bear Case)
- Key risk: Intense cost pressures and inability to optimize cost structure led to a collaps
What is the future outlook for Saurashtra Cement Ltd?
Saurashtra Cement Ltd's forward outlook based on current data signals
- Key Catalyst: Tam Expansion Changing Consumption
- Key Risk: Intense cost pressures and inability to optimize cost structure led to a collaps
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.