Shree Cement Limited (SHREECEM) AI Stock Analysis

Shree Cement Limited

(NSE:SHREECEM)

Select Model

Rating:62Neutral

Price Target:INR 23,650.00▲(2.52% Upside)

Action:reiterated

Date:10/23/26

The score is driven primarily by a strong, low-leverage balance sheet and generally resilient revenue profile, tempered by inconsistent cash-flow conversion and margin/cost pressure. Technicals are weak (negative MACD and trading below key moving averages), and valuation is stretched (high P/E with low dividend yield). Earnings-call commentary is supportive on demand, mix and capacity plans, but cost inflation and sequential softness remain meaningful near-term risks.

Positive Factors

Conservative Balance SheetVery low leverage and substantial net cash provide financial resilience through construction cycles and input-cost volatility. This strengthens the company’s ability to fund capacity expansion, sustainability projects, and operating needs without relying heavily on external financing.

Negative Factors

Fuel-Driven Margin PressureHigher fuel costs are directly reducing profitability per ton, while the coming quarter’s landed fuel cost is expected at INR 2.15–INR 2.20. Persistent cost pressure could limit margin recovery even if demand and volumes remain healthy.

Shree Cement Limited (SHREECEM) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 800.63B
Dividend Yield: 0.65%
Average Volume (3M): 3,115
Price to Earnings (P/E): 52.4
Beta (1Y): 0.90
Revenue Growth: 14.32%
EPS Growth: -7.88%
Country: India
Employees: 7,157
Sector: General
Sector Strength: 55
Industry: Construction Materials

Shree Cement Limited Business Overview & Revenue Model

Company Description

Operating from its Kolkata, India headquarters, Shree Cement Limited was founded in 1979 and is actively engaged in the production and distribution of cement and clinker across both Indian and international markets. The company's diverse cement portf...

How the Company Makes Money

Shree Cement primarily makes money by manufacturing and selling cement to a broad customer base that includes individual home builders, construction contractors, and institutional buyers involved in real estate and infrastructure projects. Its core r...

Shree Cement Limited Earnings Call Summary

Earnings Call Date:Oct 22, 2026(Q2-2027)|% Change Since:3.40%|Next Earnings Date:Feb 03, 2027

Earnings Call SentimentPositive

The call was broadly constructive, with strong year-on-year volume growth, higher EBITDA, improving premium mix and pricing, ready-mix expansion, sustainability progress, and continued capacity investments. The main challenges were higher fuel and production costs, lower sequential performance, weak monsoon conditions, and geopolitical pressure in West Asia. Management nevertheless maintained positive demand, volume, and growth expectations.

Positive Updates

Strong Year-on-Year Volume and EBITDA Growth

India sales volumes increased approximately 18% year-on-year from 7.91 million tons to 9.31 million tons, realizations improved 1% from INR 4,840 per ton to INR 4,870 per ton, and consolidated EBITDA rose about 4% from INR 974 crore to INR 1,016 crore. Consolidated sales volumes increased about 14% from 9.23 million tons to 10.52 million tons.

Negative Updates

Weak Monsoon and External Geopolitical Headwinds

The quarter was affected by a weak monsoon in most regions and the conflict in West Asia. Management said the weak monsoon may hold back rural demand for some time, while the East was an exception.

Company Guidance

Management said landed fuel cost for the coming quarter would be around INR 2.15-INR 2.20, inventory would be around INR 60 crore-INR 70 crore by year-end, and quarter three cost should not be very different than quarter two; industry demand growth was estimated at 7%-10%, with Shree Cement expected to grow slightly better than the industry, while India volumes were expected to be between 40 million tons-41 million tons, the full-year tax rate between 31%-32%, and second-half capital expenditure around INR 700 crore-INR 800 crore. The Meghalaya plant is expected to be commissioned in the quarter ending March 31st, 2028; 80 MW more green power is being added; premium share is targeted to cross 40% in few years, with the promise given for about 2028, 2029; UAE volumes were expected to be around 4 million tons-5 million tons on a full annualized basis; new capacity utilization would be around 15%-20% in the first year and take around two to three years to attain maximum sales; AFR consumption was expected to improve beyond 5%, with 6%, 7%, 8% cited as the level at which its cost basis would be assessed; and quarter three and quarter four performance was expected to be reasonably better if not similar numbers as quarter two.

Shree Cement Limited Financial Statement Overview

Summary

Strong, conservatively levered balance sheet (Balance Sheet Score 86) offsets more mixed operating quality: revenue scale is resilient but margins have compressed and profitability has been volatile (Income Statement Score 72), while free cash flow has been uneven with past negative/low periods (Cash Flow Score 58). Overall financial risk looks contained, but cash generation and margin stability remain key swing factors.

Income Statement

72Positive

Balance Sheet

86Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	230.31B	209.43B	189.76B	200.92B	174.41B	145.85B
Gross Profit	113.83B	97.23B	113.70B	114.01B	91.26B	92.10B
EBITDA	41.64B	52.99B	45.19B	51.11B	34.15B	42.50B
Net Income	15.83B	17.44B	11.23B	23.96B	12.71B	23.32B
Balance Sheet
Total Assets	326.51B	314.76B	284.92B	279.53B	263.34B	237.49B
Cash, Cash Equivalents and Short-Term Investments	70.24B	86.94B	67.39B	57.03B	35.49B	37.79B
Total Debt	21.79B	18.68B	10.46B	16.56B	27.25B	21.29B
Total Liabilities	87.38B	81.62B	69.13B	72.09B	76.57B	62.38B
Stockholders Equity	238.62B	232.68B	215.38B	207.03B	186.36B	174.60B
Cash Flow
Free Cash Flow	0	19.58B	8.16B	2.07B	-7.46B	4.50B
Operating Cash Flow	0	38.23B	49.20B	33.47B	25.69B	26.68B
Investing Cash Flow	0	-39.62B	-37.28B	-14.18B	-24.14B	-21.51B
Financing Cash Flow	0	833.30M	-12.96B	-17.10B	-2.77B	-8.49B

Shree Cement Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price23069.05

Price Trends

50DMA22846.83Positive

100DMA24336.73Negative

200DMA24819.17Negative

Market Momentum

MACD106.48Negative

RSI56.13Neutral

STOCH76.88Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHREECEM, the sentiment is Positive. The current price of 23069.05 is above the 20-day moving average (MA) of 22388.94, above the 50-day MA of 22846.83, and below the 200-day MA of 24819.17, indicating a neutral trend. The MACD of 106.48 indicates Negative momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 76.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SHREECEM.

Shree Cement Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SHREECEM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ULTRACEMCO	64Neutral	INR 3.25T	36.91	―	2.17%	17.79%	18.30%
IN:AMBUJACEM	63Neutral	INR 865.96B	30.72	―	0.57%	5.64%	-50.36%
IN:SHREECEM	62Neutral	INR 832.35B	52.40	―	0.65%	14.32%	-7.88%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ACC	54Neutral	INR 212.26B	24.05	―	0.66%	7.96%	-73.56%
IN:JKCEMENT	54Neutral	INR 368.54B	38.60	―	0.42%	17.33%	-7.43%
IN:DALBHARAT	42Neutral	INR 248.47B	50.97	―	0.68%	6.14%	-56.44%

* General Sector Average

Performance Comparison

IN:SHREECEM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SHREECEM	Shree Cement Limited	23069.05	-4858.94	-17.40%
IN:ACC	ACC Limited	1130.30	-728.15	-39.18%
IN:AMBUJACEM	Ambuja Cements Limited	348.50	-226.00	-39.34%
IN:DALBHARAT	Dalmia Bharat Ltd.	1324.70	-745.52	-36.01%
IN:JKCEMENT	J.K. Cement Ltd.	4770.70	-1104.88	-18.80%
IN:ULTRACEMCO	UltraTech Cement Limited	11050.10	-663.85	-5.67%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 23, 2026

Shree Cement Limited AI Stock Analysis