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Shree Cement Limited
(SHREECEM)
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Rating:62Neutral
Price Target:
₹23,650.00
▼(-11.55% Downside)
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 Sheet
Very 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 Pressure
Higher 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very 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.
Read all positive factors
Shree Cement Limited (SHREECEM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹832.35B
Dividend Yield0.65%
Average Volume (3M)2.34K
Price to Earnings (P/E)52.4
Beta (1Y)0.90
Revenue Growth14.32%
EPS Growth-7.88%
CountryIN
Employees7,157
SectorGeneral
Sector StrengthN/A
IndustryConstruction Materials
Share Statistics
EPS (TTM)438.86
Shares Outstanding36,080,750
10 Day Avg. Volume3,440
30 Day Avg. Volume2,337
Financial Highlights & Ratios
PEG Ratio0.86
Price to Book (P/B)3.57
Price to Sales (P/S)3.97
P/FCF Ratio42.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹26,000.00Price Target Upside-2.77% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)488.27
Revenue Forecast (FY)₹235.86B
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 po...
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 cor...
Shree Cement Limited Earnings Call Summary
Earnings Call Date:Oct 23, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Positive
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.
Read all updates
Q2-2027 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
58
Neutral
| 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 | 0.00 | 19.58B | 8.16B | 2.07B | -7.46B | 4.50B |
| Operating Cash Flow | 0.00 | 38.23B | 49.20B | 33.47B | 25.69B | 26.68B |
| Investing Cash Flow | 0.00 | -39.62B | -37.28B | -14.18B | -24.14B | -21.51B |
| Financing Cash Flow | 0.00 | 833.30M | -12.96B | -17.10B | -2.77B | -8.49B |
Shree Cement Limited Technical Analysis
Positive
26739.35
Price Trends
22846.83
Positive
24336.73
Negative
24819.17
Negative
Market Momentum
106.48
Negative
56.13
Neutral
76.88
Neutral
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 26739.35 is above the 20-day moving average (MA) of 22388.94, above the 50-day MA of 22846.83, and above 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹865.96B | 30.72 | ― | 0.57% | 5.64% | -50.36% | |
64 Neutral | ₹3.25T | 36.91 | ― | 2.17% | 17.79% | 18.30% | |
62 Neutral | ₹832.35B | 52.40 | ― | 0.65% | 14.32% | -7.88% | |
62 Neutral | ₹212.26B | 24.05 | ― | 0.66% | 7.96% | -73.56% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | ₹368.54B | 38.60 | ― | 0.42% | 17.33% | -7.43% | |
49 Neutral | ₹248.47B | 50.97 | ― | 0.68% | 6.14% | -56.44% |
* General Sector Average
IN:SHREECEM
Shree Cement Limited
23,069.05
-4,858.94
-17.40%
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IN:AMBUJACEM
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IN:DALBHARAT
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1,324.70
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IN:JKCEMENT
J.K. Cement Ltd.
4,770.70
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-18.80%
IN:ULTRACEMCO
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11,050.10
-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.