Moneycontrol
May 18, 2017 03:37 PM IST | Source: Moneycontrol.com

Buy Shree Cement; target of Rs 23316: Motilal Oswal

Motilal Oswal is bullish on Shree Cement has recommended buy rating on the stock with a target price of Rs 23316 in its research report dated May 16, 2017.

Buy Shree Cement; target of Rs 23316: Motilal Oswal

Motilal Oswal's research report on Shree Cement


SRCM’s 4QFY17 volumes increased 11% YoY (+21% QoQ) to 5.9mt, led by capacity ramp-up in east. Realizations rose 2% QoQ (+14% YoY) due to an increase in prices in its focus markets in north in February and March 2017.


Outlook


SRCM is likely to generate operating cash flow of INR108b over FY16-FY19, with margin improvement and better asset turnover resulting in PBT CAGR of 34% over FY17-FY19 and RoIC in excess of 50% in FY19. We maintain Buy with a target price of INR 23,316.


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