Buy Shree Cement; target of Rs 33,400: Sharekhan

Sharekhan's research report on Shree Cement

Management emphasised prioritising profitability rather than maximizing sales volumes. For FY26, it expects volume growth of 2-3%, lower than the industry’s growth estimate of 7–8%. Management stated a 5-6% price rise, targeting a 9% revenue growth and an EBITDA/tonne of Rs.1,400 for FY26. In FY25, the total capacity stood at 62.8 mtpa. The company will add 6 mtpa capacity in Rajasthan and Karnataka, bringing total capacity to 68.8 mtpa by end of FY26.

Outlook

We maintain a Buy on Shree Cement with a revised price target of Rs.33,400, as the management focuses on profitability over volume growth, robust expansion roadmap and a favourable demand outlook.

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