Sri Chakra Cement Limited

Basic Materials — Building Materials · BSE

₹34.50+₹1.13 (+3.39%)

DalalBaazaar Score

19 / 100

🔴 Poor

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, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sri Chakra Cement Limited manufactures and sells cement in India. It offers OPC 53/43 and PPC grade cement products. The company also engages in the solar power generation business. Sri Chakra Cement Limited was incorporated in 1981 and is based in Hyderabad, India.

IndustryBuilding Materials

SectorBasic Materials

Employees219

Annual revenue₹129 Cr

How does it make money?

Turns over ₹129 Cr a year. Of every ₹100 of sales, about ₹-18 reaches shareholders as profit, with ₹-16 left at the operating level before interest, tax and depreciation. Each of its 219 employees supports ₹58.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹58.7 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -83.3% 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.

Peer median ROE7.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -46% while net margin moved +444% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-46%

Margin effect+444%

DalalBaazaar Score

19/ 100

Poor

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

18/ 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

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 24% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention0

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

Red Flags

6 items require attention · 4 high · 2 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 -10.7x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹23 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 20.9 points, from 4.8% to -16.1%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -12.2x to -10.7x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.26 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 24% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 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.
Margins are being competed away
EBITDA margin has fallen from 4.8% to -16.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 -18%✓ -16.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -10.7x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 10 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 4 neutral · 5 weak

Market Cap

₹31 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)

₹-17.9

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

-83.3%

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)

-29.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

59.5%

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

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-3.2%

Weak

Thin margins leave little room for error

Net Margin

-13.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.26

Tight

Tight short-term liquidity

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

32.5 / 35.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹237 Cr	₹223 Cr	₹107 Cr	₹129 Cr	-18.5%
EBITDA	₹11 Cr	₹4 Cr	-₹41 Cr	-₹21 Cr	—
EBITDA Margin	4.8%	1.6%	-38.5%	-16.1%	—
PAT (Net Profit)	-₹8 Cr	-₹11 Cr	-₹57 Cr	-₹23 Cr	—
EPS	₹-8.7	₹-11.83	₹-63.31	₹-25.65	—
ROE	-13.9%	-23.4%	—	—	—
ROCE	1.0%	-6.7%	-82.5%	-83.3%	—
Total Debt	₹77 Cr	₹44 Cr	₹63 Cr	₹58 Cr	-8.6%
Free Cash Flow	-₹4 Cr	₹55 Cr	-₹17 Cr	₹3 Cr	—

🔴 Revenue has shrunk at 18.5% a year over 3 years.

🔴 EBITDA has turned negative, from ₹11 Cr to -₹21 Cr.

🔴 EBITDA Margin has fallen from 4.8% to -16.1% over 3 years (-20.9 pts).

🔴 ROCE has fallen from 1.0% to -83.3% over 3 years (-84.3 pts).

🟢 Total Debt has shrunk at 8.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹134 Cr

Total Liabilities

₹167 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.8%

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

1 mixed5 general

Sri Chakra Cement closes trading window ahead of Q2FY27 results

scanx.trade, 01 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Sri Chakra Cement suspends manufacturing at Karampudi unit

scanx.trade, 27 Jun

Best Cement Penny Stocks to Invest in India 2026 for Long-Term Growth

Univest, 16 Mar

Sri Chakra Cement accepts WTD Sriram Kapilavai resignation

scanx.trade, 25 Aug

5 Smallcap Penny Stocks that Rallied up to 1,000% in 2025

Equitymaster, 29 Sept

Sri Chakra Cement receives IBC demand notice for ₹2.91 Cr

scanx.trade, 01 Aug

Watch Items

Revenue growth is negative (-29.6%) on the latest reported period — check if this is one-off or a trend.
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.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Sri Chakra 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.

1 of 3 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑