Buy Shree Cement; target of Rs 27000: Sharekhan

Sharekhan's research report on Shree Cement

In Q3FY2021, Shree Cement reported strong beat on operational profitability and net earnings while net revenues broadly remained in-line with estimates. We expect strong demand to continue for its key regional markets viz. North and East. Expect cement prices to increase in busy season led by higher demand and increased key input costs. Capacity expansion plans to reach 57MTPA over three years and 80MTPA over six-seven years would provide sustainable long term growth.

Outlook

We retain our Buy rating on Shree Cement Limited (Shree Cement) with an unchanged PT of Rs. 27,000, as we expect it to report industry leading growth led by rising capacity utlisation.