Shree Cement Q1 Results Review - Volume Focus Singes Margin: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Shree Cement Ltd.’s volume focus in Q1 FY25 was exceptional given it stood flat QoQ (up 8% YoY) as against 5-20% drop reported by industry majors. However, implied gain in market share came at the cost of margin, which slipped ~700 basis points QoQ (flat YoY). As blended realisation plunged more than 6% QoQ while cost/tonne rose 2.6%, Ebitda at Rs 9.2 billion (down 2% YoY; 31% QoQ) stood 18% below estimates. Calibrating for management's guidance of a weak Q2/Q3 FY25, we chop FY25/26E Ebitda by 21%/11%. Continued weakness in cement prices poses a risk to our revised estimates even as Shree Cement appeared optimistic on recovery H2 FY25 onwards. Keeping faith, we continue to value Shree Cement at 16 times FY26E Enterprise value/Ebitda and maintain Hold with a revised target price of Rs 24,184 (versus Rs 27,085 earlier). .Click on the attachment to read the full report:.Shree Cement Q1 Results Review - Muted Performance Due To Pricing Pressure: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Shree Cement Q1 Results Review - Volume Focus Singes Margin: ICICI Securities

Sectoral pangs hurts profitability; hence the brokerage maintains its Hold rating on the stock.

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Shree Cement Q1 Results Review - Volume Focus Singes Margin: ICICI Securities

Sectoral pangs hurts profitability; hence the brokerage maintains its Hold rating on the stock.

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