Cement & Cement Products
Shree Cements is a prominent company in the Cement & Cement Products sector, with its stock ticker being SHREECEM.
With a market capitalization of Rs. 100,972.6 Crores, the company is engaged in the manufacture and sale of various types of cement and clinker both in India and internationally.
The product range includes:
In addition to these, Shree Cements also produces ready mix concrete and aerated autoclaved concrete blocks, which are lightweight and precast building materials. The products are marketed under the Bangur brand name.
Moreover, Shree Cements is involved in power generation, boasting a total capacity of 983 megawatts through various sources, including thermal, waste heat recovery, solar, and wind power plants.
Incorporated in 1979 and based in Kolkata, India, Shree Cements has a trailing 12 months revenue of Rs. 19,764.5 Crores.
The company also rewards its investors with dividends, offering a dividend yield of 0.55% per year. In the last 12 months, shareholders received Rs. 155 in dividend per share. Notably, Shree Cements has experienced a revenue growth of 28.4% over the past three years.
Summary of Shree Cements's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Nov 24
Management Outlook:
Shree Cement's management remains cautiously optimistic, expecting demand recovery driven by government infrastructure spending post-budget delays, improved rural demand (supported by strong monsoons, Rabi sowing, and MSP hikes), and festive season momentum. While near-term demand remains mixed, urban markets may stabilize, and price recovery is anticipated as volumes improve.
Key Points:
Risks: Sustained price recovery hinges on demand uptick. Capex of ~Rs.4,000cr/year planned through FY28.
Last updated: Nov 24
Question 1:
Jyoti Gupta: Well, the numbers are quiet satisfying, but I just wanted to know, have we lost market share by any chance because there is a sharp decline of almost 7% in the East market or anywhere or has been some change in the strategy in terms of volume sales?
Answer:
Management clarified that the Company prioritized value over volume in Q2 due to weak industry demand, focusing on premium products and disciplined pricing to mitigate price erosion. While volumes declined 7% YoY, they outperformed on realizations (-0.4% vs. industry average). Market share figures were not explicitly disclosed, but industry-wide demand was reported as negative, aligning with Shree's volume trend.
Question 2:
Jyoti Gupta: How do you perceive the Company with second-half for your Company and what would be your guidance in terms of volumes? Is there any increase in prices which you have seen in your key markets and do you see substantial improvement in EBITDA per ton?
Answer:
Management expects improved demand in H2 FY25 due to post-monsoon recovery, festive season, and government spending. Price recovery depends on demand stability, but optimism exists for better pricing if demand rebounds. EBITDA/ton will hinge on cost control (fuel prices stable) and operational efficiency.
Question 3:
Amit Murarka: What was the cement realization in the quarter?
Answer:
Realization stood at Rs.4,447/ton, marginally lower than Rs.4,464/ton in Q1. The Company emphasized retaining realizations despite weak demand, with minimal sequential decline (-0.4%).
Question 4:
Amit Murarka: What is the status of capacity expansion projects?
Answer:
Expansions at Jaitaran, Kodla, Baloda Bazaar, and Etah are on track for commissioning between April"“June 2025. These projects will add ~6 million tons annually. The Company targets 80 million tons by FY28.
Question 5:
Keshav Lahoti: What was the regional sales mix and volume growth?
Answer:
Sales mix: North (58%), East (31%), South (11%). Volumes declined YoY in all regions: North (-6%), East (-8%), South (-10%). Premium products contributed 15% of trade sales, with plans to stabilize this share.
Question 6:
Ritesh Shah: Why have credit days and discounts increased?
Answer:
Credit days rose marginally due to weak Q2 demand but reflect no strategic shift. Discounts were stable (~Rs.600"“650/ton) over three years, and rising EBITDA/ton (highest in industry at Rs.780) negates concerns about discount impact.
Question 7:
Rahul Gupta: What is the volume strategy post premium-product push?
Answer:
Shree aims to align volume growth with industry trends, balancing premiumization and market share. Recent prioritization of trade sales (74% of total) and reduced non-trade exposure (e.g., infrastructure) helped stabilize realizations.
Question 8:
Satyadeep Jain: Why expand capacity if targeting industry-aligned growth?
Answer:
Expansions underway (to 80 million tons by FY28) aim to maintain market share amid expected sectoral demand growth. Current projects (commissioning mid-2025) are part of a long-term plan to capitalize on India's infrastructure and housing needs.
Question 9:
Rashi Chopra: How did costs and green energy initiatives perform?
Answer:
Costs dropped to Rs.4,122/ton (-8% YoY) due to lower fuel prices (Rs.1.71/kc
Technicals: Bullish SharesGuru indicator.
Balance Sheet: Strong Balance Sheet.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Smart Money: Smart money has been increasing their position in the stock.
Size: It is among the top 200 market size companies of india.
Momentum: Stock is suffering a negative price momentum. Stock is down -3% in last 30 days.
Comprehensive comparison against sector averages
SHREECEM metrics compared to Cement
Category | SHREECEM | Cement |
---|---|---|
PE | 86.55 | 38.81 |
PS | 5.36 | 2.52 |
Growth | -4.9 % | 1.7 % |
SHREECEM vs Cement (2021 - 2025)
Understand Shree Cements ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
Shree Capital Services Ltd | 24.9% |
Digvijay Finlease Limited | 11.74% |
Flt Limited | 9.98% |
SBI Mutual Fund | 6.05% |
Mannakrishna Investments Pvt Ltd | 5.66% |
Life Insurance Corporation Of India | 4.54% |
Newa Investments Pvt Ltd | 3.81% |
Ragini Finance Private Limited | 3.52% |
Didu Investments Pvt Ltd | 3.25% |
N.B.I. Industrial Finance Company Ltd | 2.91% |
ICICI Prudential Mutual Fund | 2.15% |
Harimohan Bangur | 1.35% |
The Venktesh Co Private Limited | 1.28% |
Prashant Bangur | 1.08% |
Rajesh Vanijya P Ltd | 1.02% |
The Didwana Investment Company Limited | 0.91% |
Asish Creations Private Limited | 0.58% |
Rajkamal Devi Bangur | 0.35% |
Ranu Bangur | 0.19% |
Riya Puja Jain | 0.01% |
Distribution across major stakeholders
Distribution across major institutional holders
Valuation | |
---|---|
Market Cap | 1.06 LCr |
Price/Earnings (Trailing) | 86.55 |
Price/Sales (Trailing) | 5.36 |
EV/EBITDA | 23.51 |
Price/Free Cashflow | 418.8 |
MarketCap/EBT | 77.88 |
Fundamentals | |
---|---|
Revenue (TTM) | 19.76 kCr |
Rev. Growth (Yr) | -12.8% |
Rev. Growth (Qtr) | 10.58% |
Earnings (TTM) | 1.22 kCr |
Earnings Growth (Yr) | -72.4% |
Earnings Growth (Qtr) | 152.77% |
Profitability | |
---|---|
Operating Margin | 6.89% |
EBT Margin | 6.89% |
Return on Equity | 5.85% |
Return on Assets | 4.4% |
Free Cashflow Yield | 0.24% |
Investor Care | |
---|---|
Dividend Yield | 0.53% |
Dividend/Share (TTM) | 155 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 339.05 |
Financial Health | |
---|---|
Current Ratio | 2.01 |
Debt/Equity | 0.07 |
Debt/Cashflow | 2.27 |
Detailed comparison of Shree Cements against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
ULTRACEMCO | UltraTech CementCement & Cement Products | 3.36 LCr | 72.08 kCr | +3.51% | +16.69% | 53.79 | 4.67 | +3.34% | -2.54% |
AMBUJACEM | Ambuja CementsCement & Cement Products | 1.31 LCr | 36.36 kCr | -0.55% | -15.06% | 24.21 | 3.6 | +8.72% | +36.04% |
DALBHARAT | DALMIA BHARATCement & Cement Products | 36.57 kCr | 14.48 kCr | +7.28% | +8.84% | 63.04 | 2.53 | -0.39% | -49.21% |
ACC | ACCCement & Cement Products | 35.01 kCr | 22.1 kCr | -5.11% | -26.30% | 13.48 | 1.58 | +11.44% | +59.63% |
RAMCOCEM | The Ramco CementsCement & Cement Products | 22.17 kCr | 8.84 kCr | +2.33% | +21.61% | 59.51 | 2.51 | -5.00% | -1.60% |
INDIACEM | India CementsCement & Cement Products | 9.45 kCr | 4.51 kCr | +8.93% | +36.07% | -43.18 | 2.1 | -16.28% | +44.40% |
Updated May 2, 2025
Sustainalytics has identified significant operational controversies involving Shree Cement, raising investor concerns.
Shree Cement has a high TTM P/E ratio of 75.78 compared to the sector average of 25.89, indicating potential overvaluation.
Mutual fund holdings in Shree Cement have decreased, which could signal a lack of confidence among institutional investors.
Nomura has upgraded its rating on Shree Cement to 'buy', raising its price target, indicating an 11.6% upside.
Shree Cement has shown a yearly increase of 17.33% in stock price, reflecting strong market performance.
Analysts remain optimistic with 7 strong buy ratings for Shree Cement among 37 analysts surveyed.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.