Shree Digvijay Cement Co Ltd (DIGV) - Comprehensive Analysis Report

Summary

Shree Digvijay Cement Co Ltd, established in 1942, is a prominent India-based company focused on the manufacturing and sale of cement and clinker. Operating its primary facility in Digvijaygram, Gujarat, since 1944, it holds a pioneering position in the Indian cement industry with over seventy years of operational history. As a publicly listed entity on the BSE and NSE, the company has been part of True North, a private equity firm, since 2019. Its core mission is to create long-term value and foster excellence through customer delight, empowering its workforce, building trusted partnerships, and implementing sustainable business practices. The company is recognized as India's largest producer of Oil Well Cement and is strategically expanding its manufacturing capacity while significantly increasing its adoption of green energy.

1. Strategic Focus & Objectives

Core Objectives

The primary business objectives of Shree Digvijay Cement Co Ltd include:

Manufacturing and selling a diverse range of cement products for the domestic Indian market.

Achieving significant cost reduction through the increased adoption of green energy sources and efficient operational practices.

Expanding manufacturing capacity to meet growing market demand and enhance profitability.

Providing value-added services to customers to differentiate offerings and build stronger relationships.

Leveraging integrated logistics solutions through its subsidiary to optimize supply chain efficiency.

Specialization Areas

Shree Digvijay Cement specializes in the production of various types of cement, including:

Ordinary Portland Cement (OPC)

Portland Pozzolana Cement (PPC)

Sulphate Resisting Portland Cement (SRPC)

Oil Well Cement (OWC): The company is India's largest producer of OWC, a highly specialized product, with nearly 30 years of expertise.

Its products are marketed under the "KAMAL CEMENT" and "CEMENT KA SARDAR" brands. The company also provides value-added services such as concrete mix design and cube testing, non-destructive testing of concrete, training programs for masons, site supervisors, and engineers, mobile concrete lab services, and field visits by qualified civil engineers. Its wholly-owned subsidiary, SDCCL Logistics Limited, specializes in comprehensive logistics and supply chain solutions.

Target Markets

Shree Digvijay Cement primarily targets the domestic market in India, with a strong focus and established network in Western India. Its products cater to a broad base including infrastructure development, real estate, and specific industrial applications requiring specialized cements, such as oil and gas exploration for its Oil Well Cement.

2. Financial Overview

Funding History

Shree Digvijay Cement Co Ltd has been strategically backed by True North (formerly India Value Fund Advisers), a private equity firm, since 2019. This partnership has facilitated the company's growth and strategic initiatives. The company plans debt-funded capital expenditure to support its capacity expansion.

Key Financials

Trailing 12-month revenue (as of December 31, 2025): $86.6 million.

Fiscal Year 2024 Revenue: Rs 790 crore, representing a 9% year-on-year growth driven by a marginal increase in volume and improved average sales realization.

Estimated Revenue (first nine months of fiscal 2025): Approximately Rs 509 crore, with an operating margin of 5.80%, facing subdued average realization and operating margins during the period.

Market Capitalization (as of February 24, 2026): Approximately ₹1,073 Crore (INR 10.46 billion).

Stock Performance (as of February 13, 2026): Stock price of $0.76, market cap of $113 million, with 148 million shares outstanding.

Net Worth (as of March 31, 2024): Improved to Rs 365.75 crore, up from Rs 309.35 crore in the previous fiscal year due to steady accretion to reserves.

3. Product Pipeline

Key Products/Services

Shree Digvijay Cement's core offerings include a range of established cement products and specialized industrial services:

Ordinary Portland Cement (OPC): A fundamental product used in general construction applications.

Portland Pozzolana Cement (PPC): Contains pozzolanic material for enhanced properties like durability and reduced permeability, suitable for mass concrete work and marine structures.

Sulphate Resisting Portland Cement (SRPC): Specifically formulated to resist sulphate attacks, essential for construction in areas with high sulphate content in soil or water.

Oil Well Cement (OWC) - API 10A Class G HSR Cement: A highly specialized cement used in the oil and gas industry for cementing wells, requiring precise setting times and strength development under high-pressure and temperature conditions. Shree Digvijay Cement holds an API license for its manufacturing and is India's largest producer.

Value-added Services:

Concrete mix design and cube testing.

Non-destructive testing of concrete.

Training programs for masons, site supervisors, and engineers.

Mobile concrete lab services.

Field visits by qualified civil engineers.

Logistics Solutions (via SDCCL Logistics Limited): Integrated transportation, warehousing, fulfillment, business intelligence, global logistics, technology, and supply chain solutions, including break-bulk cargo import and export, chartering, freight forwarding, and commodity trading services. The company also operates a captive seaport.

4. Technology & Innovation

Technology Stack

Shree Digvijay Cement Co Ltd operates a fully automatic modern cement plant incorporating advanced technologies and sustainable practices:

Waste Heat Recovery System (WHRS): An 8.5 MW waste heat recovery power plant significantly contributes to the company's energy requirements, generating 275 lakh units (Net) of electrical energy in FY23, reducing reliance on conventional power sources.

Green Energy Integration: The company actively integrates green energy, with 38.40% of its total energy consumed in FY23 derived from green sources. A hybrid power contract for 8.10 MW (wind and solar) with Continuum Energy, combined with the WHRS, aims to meet over 65% of total power needs from renewable sources.

Proprietary Cement Formulations: The company is known for its superior quality Ordinary and Special Portland Cement. It is India's largest producer and an early recipient of the American Petroleum Institute (API) license for manufacturing Oil Well Cement (API 10A Class G HSR Cement). It also manufactures Sulphate Resisting Portland Cement, which requires specialized formulations, and high-quality Portland Pozzolana cement featuring superior Pozzolana particles for enhanced reactivity.

Logistics Technology: Through its subsidiary SDCCL Logistics Limited, the company leverages technology for integrated transportation, warehousing, fulfillment, and advanced supply chain solutions, including business intelligence.

Quality Management Systems: The company operates an ISO 9001, ISO 14001, and OHSAS 18000 certified plant, demonstrating adherence to international standards for quality, environmental management, and occupational health and safety.

5. Leadership & Management

Executive Team

Anil Chandanmal Singhvi: Executive Chairman. With over 40 years of experience in the cement industry, including 23 years at Ambuja Cement, he is an industry veteran who assumed his role in 2019.

Ramanujan Krishnakumar: Managing Director and CEO. He assumed the director role in 2023, concurrently serving as the MD and CEO.

Shitij Ramesh Kale: Non-Executive Non-Independent Nominee Director. Appointed in 2025.

Mahesh Shrikrishna Gupta: Independent Non-Executive Director. Appointed in 2019.

Satish Prabhakar Kulkarni: Independent Non-Executive Director. Appointed in 2020.

Mitu Samarnath Jha: Non-Executive Independent Director. Appointed in 2023.

The company's management is noted for being an excellent team brought in by True North.

Recent Leadership Changes

Shitij Ramesh Kale was appointed as a Non-Executive Non-Independent Nominee Director in 2025.

Ramanujan Krishnakumar assumed a director role in 2023, while continuing as Managing Director and CEO.

Mitu Samarnath Jha was appointed as a Non-Executive Independent Director in 2023.

Pramod Kabra resigned as a Non-Executive Non-Independent Director in December 2025.

6. Talent and Growth Indicators

Hiring Trends and Workforce

Shree Digvijay Cement Co Ltd currently employs approximately 245 full-time individuals (as of February 2026), down from about 300 previously. While specific hiring trends are not extensively detailed, the company's ambition to expand its manufacturing capacity from 1.2 MTPA to 3 MTPA suggests a future trajectory of growth, which will likely lead to increased hiring in operational, technical, and supporting roles. The company's core values and mission emphasize empowering people and promoting employee involvement and team building, indicating a focus on human capital development as a key component of its growth strategy.

7. Social Media Presence and Engagement

Digital Footprint

Shree Digvijay Cement Co Ltd maintains an official online presence through its corporate website, www.digvijaycement.com. The website serves as a central hub for information regarding the company's vision, mission, values, management team details, investor relations, and career opportunities. Specific details regarding social media activity, consistent engagement strategies across platforms, or notable digital campaigns were not available.

8. Recognition and Awards

Industry Recognition

Shree Digvijay Cement has received notable recognition for its operational excellence and commitment to quality and sustainability:

Certifications: The company's plant is certified with ISO 9001 (Quality Management), ISO 14001 (Environmental Management), and OHSAS 18000 (Occupational Health and Safety).

API License: It was among the earliest accredited companies to receive the prestigious license from the American Petroleum Institute (API) for manufacturing Oil Well Cement – API 10A Class G HSR Cement.

Sustainability and Ethics: The company has been recognized and appreciated for its commitment to sustainable development, high ethical standards, and community welfare programs.

Financial Performance: It boasts a long-term track record of resilience, demonstrating impressive returns over ten years, significantly outperforming the Sensex.

9. Competitive Analysis

Major Competitors

The Indian cement market is highly competitive, featuring several large domestic and international players. Shree Digvijay Cement's major competitors include:

UltraTech Cement: A market leader known for extensive distribution and multiple product offerings.

Ambuja Cements: Known for strong brand presence and focus on sustainable practices.

Shree Cement: Recognized for its cost efficiency and aggressive expansion strategies.

JK Cement: Significant presence in northern India, also strong in white cement.

ACC: Another long-standing player with a wide reach and diverse product portfolio.

JSW Cement: Focus on green cement and sustainable manufacturing processes.

JK Lakshmi Cement: Strong regional presence and diverse product line.

Birla Corporation: Diversified interests with a significant cement presence.

Prism Johnson: Key player with interests in various building materials.

Heidelberg Cement India: A global player with a growing presence in India.

These competitors typically focus on widespread distribution networks, achieving cost efficiencies, capacity expansions, and adopting sustainable manufacturing practices to gain market share.

10. Market Analysis

Market Overview

The Indian cement industry is a substantial and growing market. Demand is anticipated to increase over the medium term, primarily driven by robust growth in the infrastructure and real estate segments. Shree Digvijay Cement benefits from healthy demand in the Gujarat region, where its plant is located. The market is characterized by intense competition and is susceptible to fluctuations in raw material prices. The cyclical nature of the cement industry also influences market dynamics. A significant trend within the industry is the growing focus on green energy adoption and sustainable manufacturing practices, a shift Shree Digvijay Cement is actively participating in. Timely adjustments in cement prices are crucial for maintaining healthy performance and operating margins amidst these market conditions.

11. Strategic Partnerships

True North (formerly India Value Fund Advisers): Since 2019, True North, a private equity firm, has been a key strategic partner, providing backing and bringing in an experienced management team to steer the company's growth and strategic initiatives.