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 May 23, 2023.

Broker Research

May 24, 2023 / 17:36 IST

hold

26 Aug, 2025 12:21

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Emkay Global Financial's research report on Shree Cements

Shree Cement’s (Shree’s) standalone Q4FY23 EBITDA declined 2% YoY/increased 26% QoQ to Rs8.9bn, broadly in line with our estimates. Blended EBITDA/ton reduced 11% YoY/improved ~15% QoQ to Rs1,011 (Emkay: Rs1,045). Management reiterated its guidance of attaining 80mt capacity by FY30 (8% CAGR), along with building the brand and doubling the premium-products mix (to 15% in FY24) with the aim to increase the overall realizations/margins. Benefit from fall in fuel prices would largely kick-in from Q2FY24. Management guided to volume of 36mt (+13% YoY vs 7-8% growth for the industry) and capex spend of Rs33-35bn in FY24.

Outlook

Shree maintains the timeline of its projects’ commissioning, post which its capacity will increase to 56mt (vs 46mt now) by Q2FY25. We broadly maintain our FY24E-25E EBITDA, with unchanged Mar-24 target price of Rs25,000/share, based on 15x EV/E.

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