7 Best Cement Stocks to Invest with Best 2021 PE & EPS Fundamentals in India
Importance of PF and EPS fundamentals in actions
Even if you don’t embrace key valuation ratios, it’s generally advisable to have a solid knowledge of them in order to track and better understand stock prices. Price / earnings ratio (P / E) and earnings per share (EPS) are two important terms.
Earnings per share: The net income received by the company is divided by the number of outstanding shares issued to arrive at this figure.
Earnings per share is calculated by dividing a company’s profit or profit by the total number of shares outstanding (ttm). The abbreviation EPS refers to earnings per share and âttmâ refers to the last twelve months. This means that the EPS (ttm) represents the overall profits or profits of the business for the previous 12 months.
P / E Ratio: The P / E ratio is calculated by dividing the stock price by the earnings per share.
For example, if the current price of a share is Rs. 100 and it has earned Rs. 5 per share (EPS) for its shareholders in the past 12 months, the current share price is Rs. 100 The P / E ratio is calculated as 100/5 = 20.
It is not suggested to buy stocks with high PE ratios indicating that the company is overvalued as the stock could ruin your wealth to the point that you won’t recover if and when the stock falls.
Outlook for the cement sector
Cement companies in India saw a sharp increase in profitability in the second quarter of FY21, as demand for the industry increased due to the rural recovery. The demand outlook remained strong as rural markets normalized. CLSA anticipates a 14% year-over-year increase in EBITDA in the cement sector for its cover stocks during FY21. Due to increased demand in various fields such as housing, business development and industrial expansion, the cement industry is expected to reach 550-600 million tons per year (MTPA) by 2025.
Cement Growth Stocks: Shree Cement
Shree Cement was established in 1979 and the company headquarters are in Kolkata. Shree Cement is considered the third largest cement company in India. Bangur Cement and Rokcstrong Cement are two brands owned by Shree Cement. Until 2014, the company’s capacity was concentrated in northern India, but has since expanded to include Rajasthan, Uttarakhand, Bihar, Chhattisgarh, Haryana, Uttar Pradesh and Karnataka. The stock gained 74.76% over three years, against 44.34% for the Nifty 100 index. It is a large-cap company in the cement sector with a market capitalization of Rs 102,779, 26 crore. The company is one of the most prolific in the cement sector. Despite the arrival of new cement players thanks to recent inorganic techniques, Shree Cements maintains its dominant position in the Nordic regions.
HIL Ltd., founded in 1955, is a small cap company in the building materials sector with a market capitalization of Rs 3,487.63 crore. The company reported consolidated total income of Rs 846.98 crore for the quarter ended 31-03-2021, up 4.72% from the previous quarter’s total income of Rs 808.82 crore and up by 30.14% compared to the same period last year. total income of Rs 650.84 crore. In the last quarter, the company generated net profit after tax of Rs 62.73 crore. The stock returned 131.7% over three years, compared to 26.45% for the Nifty Smallcap 100.
Ultratech Cement was founded in 1983 and is headquartered in Mumbai, India. Ultratech Cement is the largest producer of gray cement in the country. It is widely regarded as the best cement producer in the country. This company is a subsidiary of the Aditya Birla group and is one of the leading companies in the cement industry. On a quarterly and annual basis, the company recorded an increase in its total income. Total income for the March 31, 2021 quarter was Rs 14,465.94 crore, up 15.52% quarter-on-quarter and 32.19% year-on-year.
The company operates in countries such as the United Arab Emirates, Bahrain, Sri Lanka and Bangladesh. The company is also a major producer of RMC and white cement.
Cement growth stocks: ACC
With an operational and commercial presence across India, ACC Limited is a significant participant in the Indian building materials industry. The company was previously known as Gujarat Ambuja Cements Ltd, but was later renamed Ambuja Cements Ltd. Holcim, a global cement company, took over the management of the business in 2006. Holcim currently owns just over half of ACL. ACC Cement Company was established in 1936 and is headquartered in Mumbai, India. The Associate Cement Company was formerly known as ACC Cement. It is one of the country’s leading cement manufacturing companies.
Cement growth stocks with the highest EPS fundamentals
|Company||Share price||Market capitalization||EPS (TTM) in Rs|
|Shree Cement||28 165.90||1.02LCr||633.54|
Cement growth stocks with the highest EPS fundamentals
Cement value stocks: NCL Industries
The main cement stocks with the best price / earnings ratio available are listed below (next).
NCL Industries Ltd., founded in 1979, is a small cap company in the cement sector with a market capitalization of Rs 978.61 crore. The company reported consolidated total income of Rs 370.92 crore for the quarter ended December 31, 2020, up 6.10 percent from the previous quarter’s total income of Rs 349.59 crore and up by 77 , 30 percent compared to same quarter last year total income of Rs 209.21 crore. In the most recent quarter, the company generated net profit after tax of Rs 41.59 crore. The shares returned 20.35% over three years, compared to 26.45% for the Nifty Smallcap 100. The company paid 4 rupees as a dividend per share.
JK Cement is a high-end company specializing in high quality cement. This cement company has a large customer base across the country and is rapidly expanding its business borders. The JK cement PE ratio is 30.61.
In India, Deccan Cements Limited produces and sells cement. Regular Portland cement, Portland pozzolan, and Portland slag cement are available, as well as specialty cement such as fast-setting, sulfate resistance, high alumina, and oil well cement, as well as ordinary Portland cement grade 53-S, which is used in railways. applications. The PE ratio of Deccan cement is 6.78.
10 Best Cement Stocks By Market Cap
|Company||Last prize||Market capitalization (Rs. Cr)|
|Shree Cements||28 233.10||101,867.14|
|Ramco Cements||1,015.40||23 952.27|
|JK Lakshmi Cem||560.00||6,589.52|
|Heidelberg Cem||248.65||5 634.74|