Deccan Cements Ltd (DECCANCE) AI Stock Analysis

2 Followers

Deccan Cements Ltd

(NSE:DECCANCE)

Select Model

Rating:40Underperform

Price Target:INR 461.00▼(-4.78% Downside)

Action:reiterated

Date:09/06/26

The overall score is very low, driven primarily by poor financial performance marked by high leverage, negative free cash flow, and weak profitability. An extremely high P/E ratio further weighs on the valuation, while technicals reflect a stock in a medium-term downtrend with neutral short-term momentum.

Positive Factors

FY2026 Revenue ReboundThe FY2026 revenue rebound shows renewed demand for Deccan Cements’ core products after the prior-year weakness. If sustained, stronger sales can improve operating leverage, support capacity utilization, and provide a broader base for rebuilding earnings over the next several quarters.

Negative Factors

Persistently Negative Free Cash FlowPersistently negative free cash flow means reported profitability is not translating into internally generated funding. Continued cash deficits can restrict investment flexibility, increase reliance on external financing, and make it harder to reduce debt or consistently support shareholder distributions.

Deccan Cements Ltd (DECCANCE) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 6.77B
Dividend Yield: 0.10%
Average Volume (3M): 917
Price to Earnings (P/E): 114.3
Beta (1Y): 0.77
Revenue Growth: 39.38%
EPS Growth: -70.89%
Country: India
Employees: 357
Sector: General
Sector Strength: 55
Industry: Construction Materials

Deccan Cements Ltd Business Overview & Revenue Model

Company Description

Deccan Cements Limited engages in the manufacture and sale of cement in India. The company offers ordinary portland, portland pozzolana, and sulphate resistance portland cement products, as well as other specialty cement products, such as rapid harde...

Deccan Cements Ltd Financial Statement Overview

Summary

Financial health is weak. While revenue grew 21%, profitability is depressed (net margin 4.5% vs. >15% historically). High debt-to-equity of 1.0 and deeply negative free cash flow with a low cash flow coverage ratio of 0.16 indicate significant financial strain.

Income Statement

48Neutral

Balance Sheet

35Negative

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	7.04B	6.36B	5.27B	7.99B	7.82B	7.90B
Gross Profit	3.11B	2.47B	2.61B	2.57B	4.33B	4.06B
EBITDA	817.90M	971.35M	515.70M	920.47M	1.06B	1.62B
Net Income	58.43M	285.78M	75.19M	372.63M	492.95M	875.74M
Balance Sheet
Total Assets	0	17.11B	16.25B	14.46B	11.55B	9.85B
Cash, Cash Equivalents and Short-Term Investments	905.07M	905.07M	1.44B	2.30B	2.12B	2.97B
Total Debt	0	7.53B	7.14B	5.20B	2.65B	1.66B
Total Liabilities	-7.51B	9.60B	9.03B	7.27B	4.68B	3.39B
Stockholders Equity	7.51B	7.51B	7.22B	7.19B	6.87B	6.46B
Cash Flow
Free Cash Flow	-568.13M	-1.45B	-3.16B	-2.34B	-1.80B	370.50M
Operating Cash Flow	392.64M	543.17M	-376.42M	566.99M	549.54M	792.73M
Investing Cash Flow	-923.37M	-1.45B	-2.27B	-2.77B	-2.19B	-917.43M
Financing Cash Flow	368.01M	378.28M	1.78B	2.38B	796.52M	452.58M

Deccan Cements Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price484.15

Price Trends

50DMA531.16Negative

100DMA548.26Negative

200DMA596.22Negative

Market Momentum

MACD-16.08Negative

RSI38.23Neutral

STOCH55.53Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DECCANCE, the sentiment is Negative. The current price of 484.15 is below the 20-day moving average (MA) of 490.37, below the 50-day MA of 531.16, and below the 200-day MA of 596.22, indicating a bearish trend. The MACD of -16.08 indicates Negative momentum. The RSI at 38.23 is Neutral, neither overbought nor oversold. The STOCH value of 55.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DECCANCE.

Deccan Cements Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:DECCANCE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SHREDIGCEM	45Neutral	INR 8.74B	-100.96	―	1.74%	32.60%	-122.62%
IN:KAKATCEM	42Neutral	INR 754.53M	-4.14	―	3.05%	-22.00%	30.68%
IN:BURNPUR	41Neutral	INR 195.50M	-0.34	―	―	―	27.95%
IN:DECCANCE	40Underperform	INR 6.79B	114.32	―	0.10%	39.38%	-70.89%
IN:ACL	40Underperform	INR 3.77B	-6.20	―	―	72.06%	63.74%
IN:SAURASHCEM	38Underperform	INR 5.49B	81.17	―	―	7.86%	-51.97%

* General Sector Average

Performance Comparison

IN:DECCANCE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:DECCANCE	Deccan Cements Ltd	484.15	-515.67	-51.58%
IN:ACL	Andhra Cements Limited	40.30	-38.70	-48.99%
IN:BURNPUR	Burnpur Cement Limited	11.62	-21.68	-65.11%
IN:KAKATCEM	Kakatiya Cement Sugar & Industries Ltd.	97.06	-39.28	-28.81%
IN:SAURASHCEM	Saurashtra Cement Limited	48.60	-48.90	-50.15%
IN:SHREDIGCEM	Shree Digvijay Cement Co. Ltd.	57.64	-31.15	-35.08%

Deccan Cements Ltd Corporate Events

Deccan Cements Reports September-Quarter Unaudited Results

Nov 12, 2026

The board on November 12, 2026, approved the unaudited standalone and consolidated financial results for the quarter ended September 30, 2026, along with the related limited review reports. Standalone revenue from operations was Rs 22,168.20 lakh, wh...

Deccan Cements Closes Trading Window Ahead of Q2 FY2026 Results

Sep 25, 2026

Deccan Cements Ltd has announced the closure of its trading window in compliance with SEBI’s Prohibition of Insider Trading Regulations, 2015, covering directors, designated employees, and their immediate relatives. The window will be shut from 1 Oct...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 06, 2026

Deccan Cements Ltd AI Stock Analysis