- Current Interest coverage ratio is 1.8 and it has never been > 3 in last 5 years.
- Tax paid last year is just 1.46 Cr against the PBT of 21.35 Cr. That’s less than 10%.
- The EPS has fluctuated widely in last 5 years. If you take average of EPS for last 3 years, it comes to around 15. With that the P/E ratio comes to around 30x, not exactly cheap for cement business. Agreed that TTM EPS is more than 50 and with that 3 year average comes to 30. That’s still P/E of 15 – not exactly cheap for cement business.
- CFO is consistently +ve and that’s a good thing but net cash flow has flirted between +ve and -ve and that doesn’t reflect promoter’s conservativeness.
- Poor ROE and ROCE ratios. Working Capital days between 40-60 in last 5 years and that’s again a good thing.
Disc: Not invested and not looking to
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