Sharekhan recommended Hold rating on Shree Cement with a target price of Rs 22,130 in its research report dated May 17, 2019.
Sharekhan's research report on Shree Cement
Shree Cement reported healthy operational performance (EBITDA per tonne up 15% y-o-y) backed by higher volume (up 13%) and better realisation (up 1.6%). However, higher interest, depreciation and lower other income led to the decline in adjusted net earnings.Shree Cement is on track to increase its current capacity of 37.9MT to 46.4MT by FY2021, which along with focus on improving realisation is likely to improve profitability over FY2019-FY2021.
We downgrade Shree Cement to Hold with a revised PT of Rs. 22,130 on account of premium valuation with limited upside potential, waiting for a better entry point.
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