Orient Cement Ltd.
ISIN: INE876N01018 • Market Cap: ₹2,661 Cr
The 5-Pillar Quality Audit for Orient Cement Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (20.0%), Return on Capital Employed (13.6%), and equity compounding (15.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.02 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-7.4%) and 3Y PAT CAGR (6.2%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 12.71 vs PEG of — and Dividend Yield of 0.4%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 72.7%, backed by 6.3% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.02)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Attractive Valuation Margin (P/E: 12.71)
Trading at a P/E multiple of 12.71, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: -7.4%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Construction Materials)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Construction Materials space.
Quantitative Strategy Eligibility
Checking ORIENTCEM against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 70/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Construction Materials Sector Peer Comparison
Compare ORIENTCEM directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Orient Cement Ltd. (ORIENTCEM)Current | 70/100 | ₹2,661 Cr | 12.71 | 13.6% | 0.02 | — |
| UltraTech Cement Ltd. (ULTRACEMCO) | 69/100 | ₹3.38 Lakh Cr | 39.55 | 12.1% | 0.30 | View |
| Grasim Industries Ltd. (GRASIM) | 60/100 | ₹2.24 Lakh Cr | 39.36 | 6.6% | 2.19 | View |
| Ambuja Cements Ltd. (AMBUJACEM) | 72/100 | ₹1.01 Lakh Cr | 23.05 | 5.0% | 0.00 | View |
| Shree Cement Ltd. (SHREECEM) | 61/100 | ₹87,893 Cr | 53.92 | 10.6% | 0.07 | View |
| J.K. Cement Ltd. (JKCEMENT) | 64/100 | ₹40,803 Cr | 43.15 | 13.7% | 0.86 | View |
Frequently Asked Questions: Orient Cement Ltd.
Q:What is the 5-Pillar Fundamental Score for Orient Cement Ltd. (ORIENTCEM)?
Orient Cement Ltd. has a RupeeTools Fundamental Score of 70/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (69/100), Financial Health (85/100), Growth (38/100), Valuation (90/100), and Ownership Quality (72/100).
Q:Is ORIENTCEM fundamentally strong for long-term investment?
Yes, ORIENTCEM exhibits solid fundamental strength with a 70/100 score, driven by a return on equity of 15.7% and a debt-to-equity ratio of 0.02.
Q:Does ORIENTCEM pass the Coffee Can Investing filter?
No. ORIENTCEM does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ORIENTCEM compare against other Construction Materials peers?
Within India's Construction Materials sector, ORIENTCEM trades at a P/E of 12.71 and generates an ROCE of 13.6%. Compare its 5-Pillar score of 70/100 against top sector peers like UltraTech Cement Ltd. (69/100), Grasim Industries Ltd. (60/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.