Look at the detailed overview and past peformance of an established Manufacturing Company: Shivam Cements Limited
Fri, Aug 2, 2019 12:46 PM on Company Analysis, Exclusive, Featured,
Symbol: SHIVM
Sector: Manufacturing and Products
No. of Shares Outstanding: 44,000,000
Introduction
Shivam Cement was established on 2003 A.D. as a Private Limited Company, and started its commercial operation from 2011 A.D. It was converted into Public Limited Company in 2015, and it invited the general public to apply for stake in the company in 2019. Shivam cement is the first cement factory in the industry to get listed in NEPSE. It is producing 3000 TPD cement and 1900 TPD clinker from its self-owned limestone quarries. The company has been certified with ISO 9001:2008, ISO 14001:2004 and ISO 18001:2007 in the manufacture of clinker and cement.
The company has the vision to “To be the largest and most respected cement company in Nepal that partner in nation building”. To achieve this vision, the company has set the mission to establish itself as a leader in the industry providing outstanding value to their customers, safe and stimulating working environment to their employees and superior return to the nation.
Hongshi Shivam Private Limited, a new joint venture between Hongshi Cements China and Shivam Holding Private Limited (Subsidiary of Shivam Cements Limited) with 70 % and 30% stake respectively with the capacity of 6000 TPD, has also started its operation from 2018 in Sardi, Nawalparasi.
Board of Directors
|
S.No. |
Names |
Designations |
|---|---|---|
|
1. |
Mr. Surendra Kumar Goel |
Chairman |
|
2. |
Mr. Rohit Gupta |
Director |
|
3. |
Mr. Sandeep Kumar Sharda |
Director |
|
4. |
Mr. Raghunandan Maru |
Director |
|
5. |
Mr. Amit More |
Director |
|
6. |
Mrs. Alka Goyal |
Public Director |
Financial Indicators
|
Particulars |
Indicators |
FY 72/73 |
FY 73/74 |
FY 74/75 |
Q 3 75/76* |
|---|---|---|---|---|---|
|
Paid Up Capital |
NPR |
2,000,000,000 |
2,500,000,000 |
3,872,000,000 |
4,400,000,000 |
|
Share Premium |
NPR |
- |
- |
- |
940,222,000 |
|
Retained Earnings |
NPR |
890,656,517 |
1,491,429,395 |
2,385,424,107 |
3,454,643,000 |
|
Property, Plant and Equipment |
NPR |
3,366,624,438 |
4,193,907,005 |
4,649,087,225 |
4,364,309,000 |
|
Investment |
NPR |
880,000 |
1,276,000,000 |
3,965,703,000 |
3,365,703,000 |
|
Inventories |
NPR |
1,139,777,368 |
1,604,113,343 |
2,259,429,780 |
2,444,504,000 |
|
Cash Dividend |
Percent |
- |
- |
15.78% |
- |
|
Earning Price per Share |
NPR |
38.89 |
32.45 |
29.53 |
32.09 |
|
P/E Ratio |
times |
- |
- |
- |
9.53 |
(*EPS and P/E ratio are annualized, 2075/76 indicators are of 9 months only, till Chaitra of FY 2075/76)
Facts and Figures
Note: Since the data plotted in the above graphs for the last period of 2075/76 include only 9 months data (till Chaitra of 2075), due to which net profit has shown downward trend when compared to net profit of previous year and same goes for other indicators. The annualized receivables would be Rs. 2,921,518,666.67, and net profit would be around Rs. 1,411,993,333.33 with CAGR of 21.99%.
Price Outlook of Shivam (March-24-2019 to July-25-2019)
Source: SS Pro
Highest Trading Price: Rs.712 (2019-05-30)
Lowest Trading Price: Rs. 300 (2019-04-18)
Highest Closing Price: Rs. 679 (2019-05-29)
Lowest Closing Price: Rs. 305 (2019-04-22)
52-weeks High: Rs. 679
52-week Low: Rs. 305
Monthly stock performance
Source: SS Pro
Based on its stock performance since 2019, (SHIVM) Shivam Cements Limited has closed higher in 100 % of Apr months. In terms of price change, it has gained the most (3.84 % on average) in Jul month.
Top Traded Companies in the industry “Manufacturing and Products”
|
S.N. |
Symbol |
Turnover (Rs.) |
Volume |
No. of Transactions |
Market Capitalization @(2019-07-25) |
|---|---|---|---|---|---|
|
1 |
3,414,391,236 |
6,228,592 |
37,723 |
27,368,000,000 |
|
|
2 |
756,735,851 |
436,874 |
2,297 |
6,727,770,000 |
|
|
3 |
34,826,950 |
5,147 |
90 |
8,388,930,000 |
|
|
4 |
22,246,230 |
1,145 |
77 |
18,414,000,000 |
|
|
5 |
34,860 |
20 |
2 |
3,430,041,120 |
|
|
6 |
15,010 |
70 |
3 |
660,979,83 |
Source: SS pro
Looking at the data of past four months (since March) of 2019, Shivam Cement holds the top position leaving behind other companies in the industry on the basis of turnover reaching around Rs.3.4 billion, and market capitalization to Rs.27 billion.
It has distributed 15.78% cash dividend from the profit of 2074/75 to its shareholders. It has also published its improved financials (Q3 report) compared to previous year’s financials in term of net worth per share and annualized EPS. Similarly, the net profit of the company is expected to reach around Rs.1.4 billion, a rise by almost 19% compared to previous year. So, it could be expected that the company may facilitate its investors with dividend this year.
From this, it could be seen that the company had performed well in the past and may perform well in the future as well. However, Graham number 29.29 which is more than 22.50 suggests that the company’s stock is overvalued.
The demand for cement has continued to rise due to the increasing construction activities and large infrastructure development projects in the country. Similarly, Government of Nepal has prioritized the development of cement industry to make cement as one of the chief export products of Nepal. Since, Shivam Cement is the first cement factory in the industry to get listed in NEPSE, it would be interesting to wait and watch how the market of this company’s stock will move in the future.
