Hold Shree Cements target of Rs 25,000: Emkay Global Financial

Emkay Global Financial recommended hold rating on Shree Cements with a target price of Rs 25,000 in its research report dated February 09, 2023.

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February 13, 2023 / 18:12 IST

26 Aug, 2025 12:21

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Emkay Global Financial's research report on Shree Cements

Shree Cement’s (Shree’s) standalone Q3FY23 EBITDA declined 14% YoY/increased 35% QoQ to Rs7.1bn, broadly in line with our estimates, as the lower-than-expected realization was offset by lower cost. Blended EBITDA/ton declined 30% YoY/increased 26% QoQ to Rs881 (Emkay est: Rs910). For the next few years, Management intends to focus on building the brand to improve realization/margins, setting up railway siding across locations, and increasing share of green power to maintain cost leadership along with various digitization initiatives. Further, Shree reiterated its capacity guidance of 80mt by FY30 (8% CAGR) via capacity addition in favorable markets and exploring new geographies through organic & inorganic routes.

Outlook

We broadly maintain FY24E-25E EBITDA, and revise our Mar-24 TP to Rs25,000/share (earlier Rs23,300), post the halfyearly roll-over. Our DCF-based TP implies one-year forward EV/E of 15x. We structurally remain positive on the company; however, given a modest upside on TP, we downgrade the stock to HOLD from Buy.

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