Shree Cements Q3 Results Review - Good Performance Driven By Cost Improvements: Nirmal Bang

Nirmal Bang Report

Shree Cement Ltd.'s volume growth stood strong at ~11% YoY in a weak demand quarter. (Actual: estimate. 8.9:8.7 million tonne). Ebitda/tonne came in higher at Rs 1,388 (versus our estimate of Rs 1,169) due to adjustment of power revenue of Rs 3,500 million in the overall revenue. Ex-power revenue, reported Ebitda/tonne for the cement business stood at Rs 994.

The full impact of the premium product “Bangur Magna” on the net realisation/tonne for Shree Cement will be visible over the coming quarters.

We maintain 'Buy' on Shree Cement, valuing it at 17 times December 2025E enterprise value/Ebitda to arrive at a target price of Rs 32,918 (15% upside).

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