Our 3rd company in the Series of Best Stocks Below Rs. 50 is Udaipur Cement Works Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Udaipur Cement Works Limited is engaged in the manufacturing of cement. The Company’s plant is located in Udaipur district, Rajasthan. The Company is a subsidiary of JK Lakshmi Cement Limited.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹1,265cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 22.36
Sector PE Ratio: 24.84
PE Ratio of this company is low but better than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 4.48
Sector PB Ratio : 3.44
PB Ratio of this company is high than Sector’s PB ratio. So it’s Below Average PB than the peers of this company.
Dividend Yield : 0%
Sector Dividend Yield : 1.24%
Dividend Yield of this company is zero. No Dividend provided by this company.
ROE: 22.28%
ROCE: 14.88%
ROE (Return on equity) and ROCE (Return on capital equity) is Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 737.66 | 55.00 |
| 2020 | 686.88 | 15.52 |
| 2019 | 584.16 | -40.73 |
| 2018 | 379.48 | -43.34 |
You can see the company growth clearly in the above table, in 2019 Net profit was -40.73 Cr. only and in 2020, It increased to 15.52 Cr. and in 2021, it is increased to 55.00 Cr.
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 700.28 | 699.74 | 686.26 | 631.39 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 700.28 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| 138.57 | 102.94 | 58.34 | -6.50 |
Debt Level: Udaipur Cement Company debt to equity ratio (230.9%) is considered high.
Reducing Debt: Udaipur Cement Company debt to equity ratio has reduced from 329.7% to 230.9% over the past 5 years.
Debt Coverage: Udaipur Cement Company debt is well covered by operating cash flow (32.8%).
Interest Coverage: Udaipur Cement Company interest payments on its debt are not well covered by EBIT (2.6x coverage).
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 72.54% | 0.09% | 0.14% | 0.08% | 27.14% |
| Mar 2021 | 72.54% | 0.10% | 0.14% | 0.21% | 27.01% |
| Dec 2020 | 72.54% | 0.10% | 0.14% | 0.22% | 27.00% |
| Sep 2020 | 72.54% | 0.10% | 0.14% | 0.22% | 27.00% |
Above table showing there is no big change in Promotors holding which is 72.54% in June 2021. FIIs invested in June 2021 with 0.09% and retail investor is 27.14%.
Now We’ll check the return of the company, This company started from Rs. 19.01 at 24 Sep 2013. This company given 260.07% returns in last 1 year from 2020 to 31 Aug 2021.
Investment Checklist for Udaipur Cement Works Ltd.
- The company is currently profitable
- Earnings have grown by 38.8% per year over past 5 years
- They do not pay a dividend
- The company’s earnings are high quality
- Profit margins improved or Udaipur Cement Company became profitable
- At least 3 years of financial data is available
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹8B)
- Market cap is meaningful (₹12B)
- Udaipur Cement Company does not have negative shareholders equity.
According to its historical performance we can predict stock target.
[membership_protected_content user=non-member]
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
[/membership_protected_content]
[membership_protected_content]
Entry Buying Zone : 30 to 35
Target: 50 (60% Upside)
Time Horizon: 1 Year
Risk Profile: High Risk (Stock is 3.71x as volatile as Nifty)
[/membership_protected_content]
Hope you liked Our 3rd company in the Series of Best Stocks Below Rs. 50 . We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss