Shiva Cement Limited

Basic Materials — Building Materials · NSE

₹12.88+₹0.11 (+0.86%)

DalalBaazaar Score

24 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with both sales and profits growing well. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Shiva Cement Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shiva Cement Limited manufactures and sells cement and clinker products in India. It also engages in the trading of allied products. The company was incorporated in 1985 and is based in Mumbai, India. Shiva Cement Limited operates as a subsidiary of JSW Cement Limited.

IndustryBuilding Materials

SectorBasic Materials

Employees208

Annual revenue₹434 Cr

How does it make money?

Turns over ₹434 Cr a year. Of every ₹100 of sales, about ₹-29 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 208 employees supports ₹2.09 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin4.1%

Net margin-28.9%

Revenue / employee₹2.09 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

GRASIM INDUSTRIES LTDP/E 34.8x · ROE 5.5%

AMBUJA CEMENTS LTDP/E 20.4x · ROE 7.4%

SHREE CEMENT LIMITEDP/E 49.7x · ROE 7.0%

What is its competitive advantage?Little sign of one

Returns on capital of -1.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE-1.8%

Peer median ROE7.4%

DalalBaazaar Score

24/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

25/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

P/E (Trailing)

Not meaningful

P/B

—

EV/EBITDA

111.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well0

Nothing stands out as clearly improving on the years of data available.

🔴 What Needs Attention4

Debt is rising
Total debt is up 32% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Negative shareholders' equity
Liabilities exceed assets — this is a solvency question that sits above every other consideration here.
Short-term liquidity is tight
Current ratio of 0.28 — near-term obligations exceed near-term assets.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.2x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹126 Cr in the latest reported year.
🟡Debt is increasingFinancial
Total debt is up 32% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 41% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.28 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 90.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 2%✓ 4.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 90.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹151 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -0.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

2 good · 4 neutral · 5 weak

Market Cap

₹380 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-3.95

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-1.8%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

43.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

11.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹151 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹12.88

Operating Margin

4.9%

Weak

Thin margins leave little room for error

Net Margin

-24.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.28

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.31

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

19.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹347 Cr	₹311 Cr	₹434 Cr	—
EBITDA	-₹10 Cr	₹35 Cr	-₹2 Cr	₹18 Cr	—
EBITDA Margin	—	10.0%	-0.5%	4.1%	—
PAT (Net Profit)	-₹80 Cr	-₹68 Cr	-₹142 Cr	-₹126 Cr	—
EPS	₹-3.85	₹-3.27	₹-4.87	₹-4.26	—
ROCE	-8.9%	0.3%	-3.3%	-1.8%	—
Total Debt	₹1,231 Cr	₹1,359 Cr	₹1,345 Cr	₹1,619 Cr	+9.6%
Free Cash Flow	-₹459 Cr	-₹1 Cr	-₹268 Cr	-₹151 Cr	—

🟢 EBITDA has turned positive, from -₹10 Cr to ₹18 Cr.

🔴 EBITDA Margin has fallen from 10.0% to 4.1% over 3 years (-5.9 pts).

🟢 ROCE has risen from -8.9% to -1.8% over 3 years (+7.0 pts).

🔴 Total Debt has grown at 9.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,915 Cr

Total Liabilities

₹1,937 Cr

Total Debt

₹1,619 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹85 Cr

Capex

-₹236 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.5%

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

2 mixed4 general

JSW Cement announces merger with its listed subsidiary Shiva Cement

Business Standard, 30 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Shiva Cement announces book closure from July 2 to July 8, 2026

scanx.trade, 24 Jun

JSW Cement to issue 5 shares for every 41 Shiva Cement shares in merger

CNBC TV18, 29 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Massive Cement Shake-Up: JSW Cement Swallows Shiva Cement in Blockbuster Consolidation

Dalal Street Investment Journal, 30 Sept

Shiva Cement Limited Clarifies Significant Price Movement as Market Driven

scanx.trade, 10 Apr

JSW Cement (NSEI:JSWCEMENT) Stock Price

Simply Wall Street, 18 Dec

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak6/20

🔴Financial HealthStretched1/20

🟡GrowthModest10/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding4.5/15

🔴RiskHigh0.5/10

Avoid until solvency is resolved

Shiva Cement Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 2%4.1%
✗Debt / EBITDA falls below 3x90.6x
✗Free cash flow remains positive-₹151 Cr
✗Interest cover stays above 3x-0.2x