Shri Keshav Cements & Infra: Evaluation Adjustment Reflects Mixed Signals Across Key Parameters

On 19 Nov 2025, the company’s score grade experienced a call change, moving from a previous evaluation to a new status. This change was primarily influenced by developments in its technical grade, valuation metrics, financial performance, and quality indicators. Shri Keshav Cements & Infra operates within the Cement & Cement Products industry, a sector known for cyclical demand and capital-intensive operations.

Examining the technical parameters, the company’s trend shifted from a bullish to a mildly bullish stance. Weekly and monthly MACD indicators remain bullish, signalling some underlying momentum. However, the Relative Strength Index (RSI) on both weekly and monthly charts shows no clear signal, suggesting a neutral momentum in price strength. Bollinger Bands indicate a mildly bullish trend on weekly and monthly timeframes, while daily moving averages also reflect mild bullishness. Contrastingly, the KST indicator presents a bullish weekly reading but a bearish monthly reading, and Dow Theory signals are mildly bearish weekly but mildly bullish monthly. This mixed technical picture suggests a cautious market sentiment towards Shri Keshav’s stock.

Valuation metrics for Shri Keshav Cements & Infra reveal a shift from an expensive to a fair valuation grade. The company’s price-to-earnings (PE) ratio stands at an exceptionally high 37,678.69, which is an outlier figure likely influenced by recent profit fluctuations. The price-to-book value is 3.77, and the enterprise value to EBIT ratio is 30.60, while the EV to EBITDA ratio is 18.61. The EV to capital employed ratio is 1.83, indicating a moderate valuation relative to the capital base. Return on capital employed (ROCE) is recorded at 5.97%, and return on equity (ROE) is minimal at 0.01%, reflecting limited profitability. Compared to peers such as Sh. Digvijay Cement and Saurashtra Cement, which are classified as very expensive and expensive respectively, Shri Keshav’s valuation appears more moderate. This repositioning in valuation grade suggests a recalibration in market expectations and relative pricing.

Financial trends present a mixed narrative. The company reported positive quarterly performance in Q2 FY25-26, with net sales at ₹35.41 crores, growing at a rate of 44.65%. Profit after tax (PAT) for the latest six months was ₹3.78 crores, indicating some earnings generation. However, over the past year, profits have declined sharply by approximately 99.8%, despite the stock generating a return of 18.21% in the same period. This divergence between stock price performance and profitability points to underlying volatility and investor speculation.

Long-term financial indicators show that Shri Keshav Cements & Infra is a high-debt company, with an average debt-to-equity ratio of 3.97 times. Operating profit has grown at an annualised rate of 16.39% over the last five years, which is modest given the sector’s capital intensity. The average ROCE of 8.38% over the same period signals relatively low profitability per unit of capital employed, reflecting challenges in operational efficiency and capital utilisation. These factors contribute to a cautious view on the company’s fundamental strength despite recent positive sales growth.

From a market performance perspective, Shri Keshav has outperformed the Sensex benchmark over multiple time horizons. The stock’s returns over one year stand at 18.21%, compared to Sensex’s 9.48%. Over three years, the stock has delivered 73.65% returns against Sensex’s 37.31%, and over five years, the return is a substantial 668.39% compared to Sensex’s 91.65%. Even over a decade, the stock’s return of 239.87% slightly exceeds the Sensex’s 232.28%. These figures indicate strong long-term capital appreciation relative to the broader market, despite recent short-term volatility.

Technically, the stock closed at ₹215.15 on the trigger date, down from the previous close of ₹225.50. The 52-week high and low prices are ₹286.75 and ₹124.30 respectively, indicating a wide trading range over the past year. On the day of the evaluation adjustment, the stock’s intraday high was ₹229.35 and low was ₹215.15, reflecting some intraday volatility. The daily price change was -4.59%, signalling a notable downward movement on that day.

In summary, the revision in Shri Keshav Cements & Infra’s evaluation score is underpinned by a complex set of factors. The technical indicators show a cautious but mildly positive momentum, while valuation metrics suggest a more balanced pricing relative to peers. Financial trends reveal a company with recent sales growth but challenged profitability and high leverage. The stock’s long-term market performance remains robust, outperforming key indices over multiple periods. Investors analysing Shri Keshav should weigh these mixed signals carefully, considering both the company’s operational fundamentals and market dynamics within the cement sector.

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