Neutral Shree Cement; target of Rs 22,410: Motilal Oswal

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Motilal Oswal's research report on Shree Cement

Shree Cement (SRCM)’s 3QFY23 performance was below our estimates led by lower realization (up 1% QoQ v/s est. 3% growth). EBITDA was at INR7.1b v/s est. INR7.5b and EBITDA/t was at INR881 (v/s est. INR940). Profit stood at INR2.8b v/s est. INR3.6b, on higher depreciation and ETR. The management’s key focus areas will be on ESG, brand building, new investments and initiatives as well as digitization. The target is to achieve a capacity of 80mtpa (9.5mtpa under execution) by 2030 v/s 46.4mtpa now.

Outlook

We reduce our FY23E EPS by 7.5% on weak 3QFY23 performance, while keeping our FY24/FY25 estimates intact. We expect SRCM’s cost benefits over peers to narrow gradually. The stock’s valuation at 20.4x FY24E EV/EBITDA appears rich and hence, we maintain our Neutral rating.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Shree Cement - 09 -02 - 2023 - moti