Shree Digvijay Cement Stock Analysis
Fundamental and technical analysis of Shree Digvijay Cement
STOCK ANALYSIS
8/21/20255 min read
About Company
Shree Digvijay Cement is one of the oldest cement manufacturers in India, established in 1944 and based in Gujarat. The company produces and sells various types of cement, including specialty products such as oil well cement, which is used in the oil and gas industry for drilling purposes. Its main manufacturing plant is located in Digvijaygram (Sikka), Jamnagar. Shree Digvijay Cement is recognized for its commitment to quality, providing strong and durable cement products that are resistant to cracking and corrosion. Over the years, it has built a reputation for innovation and efficient capital management, helping it expand its production capacity and remain a trusted name in the construction materials sector.
Business Segments
Shree Digvijay Cement operates mainly in two business segments: the cement business and the logistics business. Its core activity is manufacturing various types of cement, including Portland Pozzolana Cement, Ordinary Portland Cement (OPC), Sulfate Resistant Portland Cement (SRPC), and Oil Well Cement, which is specially used in the oil and gas industry. The company sells its cement under the brand name "Kamal Cement" primarily in the Gujarat region through a vast network of over 1,000 dealers. Alongside cement production, it owns and operates a captive sea port and provides logistics services through its wholly owned subsidiary, SDCCL Logistics Limited. This unique combination of cement manufacturing and tailored logistics solutions via road, rail, and sea port facilities helps the company efficiently manage its supply chain and cargo handling. Additionally, Shree Digvijay Cement focuses on sustainable practices with waste heat recovery and wind power to reduce energy costs and environmental impact. The company is also expanding its production capacity, enhancing its ability to meet growing demand.
Company's Facility
Shree Digvijay Cement’s main manufacturing facility is located in Digvijaygram (Sikka), Jamnagar, Gujarat. This plant is equipped with modern technology to produce various types of cement, including specialized products like Oil Well Cement. The company also operates a captive sea port in the same area, which supports its logistics and transportation needs by facilitating the movement of raw materials and finished goods efficiently. Besides the manufacturing plant and port, the company has integrated waste heat recovery systems and uses wind power installations to promote sustainable energy use and reduce environmental impact. These facilities, combined with a robust logistics network, allow Shree Digvijay Cement to maintain high production standards while managing costs effectively and supporting its regional distribution in Gujarat and beyond.
Production Capacity
Shree Digvijay Cement has a production capacity of approximately 1.2 million tonnes per annum at its manufacturing plant in Digvijaygram, Jamnagar. The company focuses on continuously improving its production capabilities through technology upgrades and efficient plant operations. This capacity allows it to serve both the local market in Gujarat and specialized sectors such as the oil and gas industry with its Oil Well Cement. Additionally, the company is working on expanding its capacity to meet the growing demand for cement driven by infrastructure and construction activities in the region. These efforts help Shree Digvijay Cement maintain its competitive position and support long-term business growth.
Future Plans
Shree Digvijay Cement’s future plans focus on expanding its production capacity and strengthening its market presence, especially in the growing construction and infrastructure sectors. The company aims to invest in modern technologies to enhance operational efficiency, reduce costs, and maintain high-quality cement production. It is also exploring new product launches to diversify its portfolio and capture emerging opportunities in specialized cement markets. Additionally, Shree Digvijay Cement plans to continue its emphasis on sustainable practices by increasing the use of renewable energy and waste heat recovery systems to minimize environmental impact. With a strong focus on expanding distribution channels and improving logistics, the company is positioning itself for steady growth in both domestic and international markets in the coming years.
Financial Prospects of The Company
Market Valuation & Stock Price
The company has a market valuation of 1,457 crores and a stock price of 98.5
Price-to-Earnings Ratio (P/E Ratio)
The price-to-earnings ratio of the company is 52.6
Book Value (PB Ratio)
The book value of the company is 24.6
Price-to-Book Value (PE x PB)
The price-to-book value of the company is 211
Earnings Per Share (EPS)
The earnings per share of the company are 1.88
Return Ratios
The return on capital employed (ROCE) is 8.73% and the return on equity (ROE) is 6.77%
Dividend Yield
The company pays an annual dividend of 1.54%
Sales & Profit in The Last 5 Years
In FY 2020-21, sales were 503 crores and profits were 54 crores. In FY 2021-22, sales were 629 crores and profits were 55 crores. In FY 2022-23, sales were 725 crores and profits were 58 crores. In FY 2023-24, sales were 792 crores and profits were 88 crores. In 2024-25, sales were 725 crores and profits were 25 crores.
Sales & Profit Growth in The Last 5 Years
In the last 5 years, sales growth was 9.07% and profit growth was -14.9%. In the last 3 years, sales growth was 4.84% and profit growth was -23.1%. In the last 1 year, sales growth was -4.04% and profit growth was -66.1%.
Investors
Shareholding Patterns
The promoters hold 54.66%, FIIs hold 1.10%, DIIs hold 1.99%, and public hold 42.25%
Company News
Shree Digvijay Cement has recently made headlines for several reasons in 2025. The company announced a dividend of ₹1.5 per share in April, with the record date set for August 22, 2025. Financially, the company reported standalone net sales of ₹195.95crore for the June 2025 quarter, reflecting a year-on-year increase of 10.83%. However, in its consolidated results for March 2025, the net sales dipped slightly to ₹216.42crore, down 3.54% compared to the previous year.
Despite the revenue contraction noted for the first time in three years, Shree Digvijay Cement's stock price showed resilience and climbed by over 10% in recent trading sessions, moving from ₹86.86 to ₹95.65. In terms of corporate actions, the company is also undertaking new debt for the first time in five years, indicating possible plans for expansion or operational upgrades.
Meanwhile, market analysts and reports are closely watching the company after some insiders sold shares, which is signaling caution for investors. The Board of Directors held a meeting on July 30, 2025, to review the latest financial results and regulatory compliances, underscoring the company’s ongoing transparency and adherence to market regulations. Overall, 2025 has been a dynamic year for Shree Digvijay Cement, marked by a mix of financial growth, strategic changes, and active shareholder communications.
Technical Analysis
Company Chart
Moving Average (MA)
The stock is trading above the 50-MA, which indicates that it is in a bullish trend.
The stock is trading above the 200-MA, which also indicates that the stock is in a strong bullish trend.
Chart Patterns
The chart pattern shows that the stock is in a bullish trend after consolidation for the last many months.
Relative Strength Index (RSI)
Currently, the RSI of the stock is 78, which indicates that the stock is in the overbought zone.
Strengths & Weaknesses
Strengths
Long-established brand with a stronag presence in Gujarat.
Diverse product range, including specialized oil well cement.
Integrated operations with the manufacturing plant and captive seaport for efficient logistics.
Commitment to sustainability with renewable energy use and waste heat recovery.
Strong distribution network with over 1,000 dealers.
Consistent financial performance and dividend payments.
Weaknesses
Limited geographic presence mostly concentrated in Gujarat.
Recent slight decline in consolidated revenue indicating market challenges.
Dependence on regional demand which can limit growth potential outside core areas.
Insider selling of shares can raise investor concerns.
Moderate production capacity compared to larger competitors in the sector.