Deccan Cements Ltd. (DECCANCE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sh. Digvijay Cem

Deccan Cements

Mangalam Cement

NCL Industries

Sanghi Industrie

Saurashtra Cem.

BIGBLOC Const.

KCP

Sagar Cements

Andhra Cements

Shiva Cement

Why is Deccan Cements Ltd. ?

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

Positive results in Sep 25

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%

With ROCE of 3.1, it has a Attractive valuation with a 1.2 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 22.30%, its profits have risen by 19.9% ; the PEG ratio of the company is 1.6

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

Market Beating Performance

The stock has generated a return of 22.30% in the last 1 year, much higher than market (BSE500) returns of 1.56%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Deccan Cements should be less than 10%
Overall Portfolio exposure to Cement & Cement Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cement & Cement Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Deccan Cements for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Deccan Cements

22.57%

0.44

51.00%

Sensex

4.8%

0.41

11.82%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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

Institutional Holding

10.83%

ROCE (avg)

14.06%

ROE (avg)

8.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.44

EV to EBIT

40.12

EV to EBITDA

24.41

EV to Capital Employed

1.24

EV to Sales

3.25

PEG Ratio

1.63

Dividend Yield

0.08%

ROCE (Latest)

3.09%

ROE (Latest)

4.45%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

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 periods

MOJO 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 periods

MOJO 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 periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio