Shiva Cement Ltd stock overview: Strategic expansion amid turnaround momentum

Shiva Cement Ltd, part of the JSW Group, reported a revenue increase in the June quarter even as losses widened, reflecting sustained cost pressures amid expansion efforts.

The Odisha-based company posted standalone net sales of Rs 105.61 crore, a 9.3% rise year-on-year compared to Rs 96.61 crore in the June 2024 quarter. However, net loss stood at Rs 30.28 crore, deepening from Rs 21.65 crore a year earlier.

Operating performance was impacted, with EBITDA slipping into the red at Rs 0.74 crore, against a positive Rs 9.70 crore in the previous year’s quarter.

Stock Performance and Market Overview

On the stock market, Shiva Cement closed at Rs 32.04 on August 25 and opened at Rs 32.27 on August 26.

The stock has shown resilience within its 52-week range, touching a high of Rs 52.80 and a low of Rs 24.11. At current levels, the company commands a market capitalisation of Rs 932 crore. Its book value per share stands at Rs 6.49, suggesting potential for long-term investors if profitability improves.

Financial Snapshot

• Market capitalisation currently ranges between Rs 932 Cr to Rs 1,103 Cr, reflecting a downswing from past highs. 

• The 52-week share price has ranged from a high of Rs 52.80 to a low of Rs 24.11, currently trading near Rs 32–33. 

• Book value per share is Rs 6.49, giving a P/B multiple of ~16×, a premium justified by strategic expansion potential. 

• The Promoter holding is stable at ~66.4%, suggesting a sound ownership structure. 

• On a trailing-12-month basis, revenue stands at Rs 320 cr and net loss at Rs 151 cr, translating to modest top-line growth but persistent profitability challenges.

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Strategic Strengths & Positives

• Strategic Location: Its plant in Sundargarh, located at the nexus of three states with robust raw-material access, complements JSW Group’s eastern expansion and reduces logistics cost. 

• Group Synergies: As a JSW subsidiary, Shiva Cement supports clinker supply to JSW’s eastern units in Salboni and Jajpur, while sourcing slag and fly ash from nearby steel operations (Bhushan Power & Steel), reinforcing a cost-competitive eco-system. 

• Sales Momentum: Q1 revenue growth of 9–10% reflects improving demand and execution, especially amidst sector headwinds. 

• CSR & Sustainability: In FY 2024–25, JSW Cement contributed Rs 1.53 crore in CSR programs on Shiva Cement’s behalf, benefitting over 116,000 locals—underscoring responsible stewardship and positive brand equity. 

Key Risks & Watch Points

• Profitability Strain: While revenue is inching up, losses persist. Cost control and margin improvement remain critical, especially with rising operating costs. 

• Valuation Premium: At ~16× P/B, investor expectations hinge on successful scale-up and eventual profitability; execution risk remains. 

• Going Concern Note: Recent disclosures mention “going concern” concerns, signalling liquidity or funding pressures.

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Strong Plant Base in Odisha

Founded in 1985, Shiva Cement operates a 4,000 TPD plant in Sundargarh, Odisha, strategically positioned at the tri-junction of Odisha, Chhattisgarh, and Jharkhand. The location ensures easy access to raw materials such as limestone, slag, fly ash, and gypsum, and provides efficient road and rail connectivity.

The facility also supplies clinker to JSW Cement’s units in West Bengal and Odisha, cutting dependence on costly imports.

Backing from the JSW Group

The company benefits from synergies with JSW Group firms. Slag and fly ash are sourced from Bhushan Power & Steel’s Jharsuguda plant, located within 100 km of the factory, lowering procurement costs. Its integration within the JSW ecosystem positions Shiva Cement for sustained capacity growth and regional expansion.

Outlook: Expansion with Caution

While current losses highlight operational challenges, the company’s strategic location, resource access, and group support provide a strong foundation for growth.

Analysts note that profitability recovery will be critical, but the stock retains long-term potential for investors seeking exposure to India’s eastern cement market.