Why is Deccan Cements Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -1.84% and Operating profit at -13.89% over the last 5 years
2
Despite the size of the company, domestic mutual funds hold only 0.14% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cement & Cement Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Deccan Cements for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Deccan Cements
23.62%
0.47
51.85%
Sensex
4.85%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-1.84%
EBIT Growth (5y)
-13.89%
EBIT to Interest (avg)
7.17
Debt to EBITDA (avg)
5.73
Net Debt to Equity (avg)
0.85
Sales to Capital Employed (avg)
0.75
Tax Ratio
25.94%
Dividend Payout Ratio
11.28%
Pledged Shares
0
Institutional Holding
10.83%
ROCE (avg)
14.06%
ROE (avg)
8.77%
Valuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
36
Price to Book Value
1.38
EV to EBIT
39.10
EV to EBITDA
23.79
EV to Capital Employed
1.21
EV to Sales
3.17
PEG Ratio
1.56
Dividend Yield
0.08%
ROCE (Latest)
3.09%
ROE (Latest)
4.45%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
17What is working for the Company
PBT LESS OI(Q)
At Rs 10.14 cr has Grown at 221.58%
PAT(Q)
At Rs 9.07 cr has Grown at 324.0%
-6What is not working for the Company
NET SALES(9M)
At Rs 409.79 cr has Grown at -20.56%
DEBT-EQUITY RATIO(HY)
Highest at 1.02 times
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 128.37 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.05 times
Loading Valuation Snapshot...
Here's what is working for Deccan Cements
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 10.14 cr has Grown at 221.58%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 9.07 cr has Grown at 324.0%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Here's what is not working for Deccan Cements
Debt-Equity Ratio - Half Yearly
Highest at 1.02 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Net Sales - Nine Monthly
At Rs 409.79 cr has Grown at -20.56%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 128.37 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 8.05 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






