Shree Cements Ltd., incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 102010.92 Crore) operating in Cement sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 3775.94 Crore, down -12.86 % from last quarter Total Income of Rs 4333.37 Crore and up 44.86 % from last year same quarter Total Income of Rs 2606.58 Crore. Company reported net profit after tax of Rs 630.89 Crore in latest quarter.
Investment Rationale
The brokerage values SRCM at 16x Sep’23E EV/EBITDA and add the value of its UAE operations (USD70/t) to arrive at TP of INR28,550. It expects a 13% EBITDA CAGR over FY21–23, in line with other large-cap peers, on a 13% CAGR in cement sales volumes. It assigns a Neutral rating to the stock as it trades at 18.0x FY23E EV/EBITDA, limiting any upside.
Promoter/FII Holdings
Promoters held 62.6 per cent stake in the company as of June 30, 2021, while FIIs held 13 per cent, DIIs 10.5 per cent and public and others 14 per cent.
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