Hold Shree Cement; target of Rs 26,190: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Shree Cement with a target price of Rs 26,190 in its research report dated January 31, 2025.

Broker Research

February 03, 2025 / 11:11 IST

hold

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Shree Cement

SRCM delivered strong operating performance in Q3FY25 on better NSR and lower operating costs. Volume declined 1.5% YoY as mgmt. continued to adopt value over volume strategy similar to Q2 as demand scenario was still tepid in first half of quarter. Cement realization was better than PLe as SRCM got benefit of relatively higher pricing in Northern regions and NSR grew ~2% QoQ. SRCM delivered superior operating performance vs peers in challenging quarter on the back of lower fuel cost and better operating efficiencies. P&F and other costs declined 25/21% respectively aiding EBIDTA/t to grow sharp 38% QoQ to Rs1,079 (PLe Rs1,006). Focus on selling premium products continued and led to premium volumes reaching ~15% of total sales. Ongoing capacity commissioning is on track to be commissioned in Q1FY26 which would drive volume growth over FY25-27E.

Outlook

The stock is trading at EV of 20.4x/16.2x FY26E/FY27E EBITDA. Maintain ‘Hold’ rating with revised TP of Rs26,190 (earlier Rs24,838) valuing at 17x EV of Sep’26E EBITDA

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