“Shree Cement Q2FY25: Sharekhan Recommends Buy with Target Price of Rs. 28,800”
varahi media.com online news, November 14t,2024: Shree Cement’s standalone revenue aligned with expectations, as the company prioritized value over volume
varahi media.com online news, November 14t,2024: Shree Cement’s standalone revenue aligned with expectations, as the company prioritized value over volume growth for Q2FY2025. The EBITDA per tonne exceeded estimates, mainly due to lower-than-anticipated power and fuel costs.
The management maintained its previous guidance, projecting volume growth in line with industry rates over the next two years. Cement prices are expected to rise, supported by positive demand in H2FY2025. Expansion plans are on track, with Shree Cement targeting an 80 million tonnes per annum (mtpa) capacity by 2028. Annual capital expenditure of Rs. 4000 crore remains consistent.
We maintain a Buy rating on Shree Cement, setting a revised price target (PT) of Rs. 28,800, considering a slight downward adjustment in operational profitability due to lower-than-expected volume growth.
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