Sharekhan's research report on Shree Cement
In Q1FY2023, standalone operational numbers were in line with estimates, while net earnings lagged owing to loss on fair value of investments and higher-than-estimated depreciation. The management expects an 8-10% y-o-y rise in sales volume along with 3-4% y-o-y increase in cement prices for FY2023. Power & fuel costs are likely to inch higher during Q2FY2023 before tapering downwards. The company is expanding capacity to drive up its total domestic cement capacity to 56 mtpa by FY2025 from 46.4 mtpa.
We retain a Buy on Shree Cement with a revised PT of Rs. 24,000, factoring in downwardly revised estimates.
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