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Buy Shree Cement; target of Rs 24,300: ICICI Direct

ICICI Direct is bullish on Shree Cement has recommended buy rating on the stock with a target price of Rs 24,300 in its research report dated July 29, 2022.

July 31, 2022 / 01:50 PM IST
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ICICI Direct's research report on Shree Cement


Shree is the third largest cement group in India with domestic cement capacity of 46.4MT as of FY22. In the past 4 years, it has diversified itself from being 100% North player to the player with capacities now in Rajasthan, Uttarakhand, Bihar, Chhattisgarh, Haryana, Uttar Pradesh, Karnataka and Odisha. It also has presence in UAE with integrated cement capacity of 4MT and 3.3MT clinker (located near port in Ras-Al-Khaimah). Proximity to end user market, use of split grinding units and power capacity of 742MW (Including 211MW WHRS) makes it most efficient player in the Industry.



Outlook


With expected revenue CAGR of 15.8% and RoIC of 18%, we remain positive on company and maintain BUY rating on the stock. We value Shree at Rs24,300 i.e.18.5x FY24E EV/EBITDA.

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Shree Cement - 290722 - ic

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first published: Jul 31, 2022 01:50 pm
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