NSE Symbol: INDIACEM | BSE Code: 530005
India Cements Share Price Performance:
Stock Trends in October 2017- October 2018
In October 2017, the share price began at Rs181.75 and saw an upward trend on 31st October with the share price at Rs 194.20. On 1st November the share price stood at Rs193.10.However, by the November end, the share price plummeted and stood at Rs 173.85. At the beginning of December 2017, the share price fell again, and it was reported at Rs168.40 which soared by the December end, and the India Cements share price was reported at Rs 183.45. On 1st January 2018, the rate dipped Rs180.60 again. By January end the stock price came to Rs168.15. The downward trend continued in February also when the India Cement share price fell at Rs166.20 and by the February end the stock quote slumped at 159.25. The downward trend continued in March as well where the scrip began at Rs157.21. The share price again dipped to Rs141.75 by the March end. The April month evidenced a great start with the share price at Rs 152.70 giving some hopes, which came down again at Rs 147.05. The downward trend continued in May as well, at Rs142.80. By the end of May, the price dropped down at Rs129.95 which continued and further di[pped in the beginning of June at Rs125.85. The June month made more loss in India Cement stock prices when the stock quote fell at Rs 105.7. At the beginning of July month, the stock rate fell further down at Rs104. The July month ended with a good note at Rs117.05 which was higher than June. The share price was at Rs 117.06 at the beginning of August month which increased to Rs126.40 by the month end. The month of September saw a little downfall at Rs123.65 which again dipped to Rs101.20 by the month end. The October month began with Rs101.35 which fell to Rs98 till 16th October. 2018 saw a 52-week high of 205.95 and 52-week low of Rs89.15.
In 2018 the market capitalization stands at Rs29.18 billion.
India Cements Ltd Stock Trends in 2016-2017
January 2016 began with the India Cement share price of Rs99.25 and ended at Rs 116.60 whereas January 2017 started with Rs125.40, and it showed an enormous upward trend at Rs 183.45 by the December end.
Company Information and History:
India Cements Limited is a cement producing company in India. The company is administered under the leadership of the former International Cricket Council chairman Mr. N. Srinivasan.
It was founded in 1946 by Mr. S. N. N. Sankaralinga Iyer, and the first plant was established at Thalaiyuthu in Tamil Nadu, in 1949. It has seven integrated cement plants in Telangana and Andhra Pradesh, Tamil Nadu, and in Rajasthan (that is through its subsidiary, Trinetra Cement Ltd). The company has two grinding units, each in Tamil Nadu and Maharashtra with a capacity of 15.5 million tonnes/annum. Sankar, Coromandel, and Raasi Gold are the three brands owned by the India Cements Ltd.
The India Cements Ltd also owned the Indian Premier League franchise Chennai Super Kings from 2008 to 2014. The franchise was given to a separate entity named as Chennai Super Kings Cricket Ltd, after the Supreme Court of India removed the controversial amendment in the BCCI clause 6.2.4 of the constitution that permitted the board officials to have a commercial interest in the IPL and the Champions League T20 as on January 22, 2015. The India Cements Ltd is also alleged to have made controversial investments in Jagati Publications and Bharati Cements which were owned by Mr. Y. S. Jaganmohan Reddy.
Company's Wealth and Performance:
FY 2017- 2018:
The first quarter (April-June’ 18) earnings estimate for the Cement sector to report the net profit at Rs. 14.3 crore which was down by 46% year-on-year (down 71.5% quarter-on-quarter).
The net sales were decreased by 5.8% Y-o-Y (up 1.2 percent Q-o-Q) to Rs. 1,377 crore, the Earnings before interest, tax, depreciation, and amortization (EBITDA) were decreased by 19 percent Y-o-Y (down 29.5 percent Q-o-Q) to Rs. 150.4 crore.
India Cements Limited (ICL) reported mixed results of Q4FY18. The revenues in Q4FY17 included excise duty while the current revenues are net of GST. After adjusting for excise duty, the revenues increased 4% YoY to Rs 1,397.8 crore (vs. I-direct estimate of Rs 1,360.3 cr) in Q4FY18 which was mainly led by 6.2% Year-on-Year growth in volumes to 3.1 Million Tonnes (vs. I-direct estimate of 3.0 Million Tonnes). The blended EBITDA/tonne declined by 21.4% YoY to Rs 513/tonne (vs. I-direct estimate of Rs 713/tonne) mainly led by 4.6% YoY increase in raw material cost/tonne and 1.9% Year-on-Year increase in power cost/tonne. The board has recommended the India Cement dividend of Rs 0.8/share.
The current stay order by the Supreme Court on river sand mining ban in
Tamil Nadu is expected to improve the activity of construction in the upcoming quarters.
The company has 38% of its manufacturing capacity in Tamil Nadu. Hence, this will be a critical beneficiary for the pick-up in demand. Further, apart from TN, a significant driver of cement demand in the South Indian market is expected to be the AP and the Telangana market.
Improving the cash flows to drive the reduction in debt:
The higher working capital of the company led to an increase in debt by ~| 200 cr in FY18. However, better management of working capital and improving margins are expected to drive the operating cash flow of the company resulting in the cash flow generation of Rs. 700 crore in FY18-20E. It is believed to reduce debt by ~| 190 crores in FY20E. Given this, the debt to equity is expected to improve from 0.6x in FY18 to 0.5x in FY20E.
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How can you purchase the India Cement Shares?
India Cement stocks can be bought from NSE(National Stock Exchange) and BSE(Bombay Stock Exchange) in India. Details regarding the stock price, PE ratio, previous closings and other metrics that can help in determining India Cement stock price can be found on BSE and NSE website. The India Cements shares are listed on the Benchmark Indices of India like BSE Sensex and Nifty.