Shree Cements
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Shree Cement's recent management commentary highlights a strategic pivot towards consolidating results and optimizing operations in response to external shocks, particularly geopolitical disruptions affecting fuel supply. The company reported a robust 17% YoY volume growth, indicating strong demand recovery, which supports Vista's forecast of accelerating revenue growth beyond historical levels. Management's focus on enhancing operational efficiency through green energy initiatives and electric logistics is expected to stabilize margins despite rising input costs. The anticipated capacity expansions in the UAE and Northeast India further bolster long-term growth prospects. However, challenges such as competitive pricing pressures and potential demand fluctuations due to seasonal factors remain critical watchpoints. Overall, Vista's outlook reflects a balanced view, with expected upside driven by strategic growth initiatives and a solid balance sheet, while remaining vigilant of external risks that could impact profitability
Why We Like This Stock
- Strong volume growth of 17% YoY indicates robust demand recovery
- Strategic capacity expansions in the UAE and Northeast India are set to enhance long-term growth
- Management's focus on operational efficiency and green energy initiatives supports margin stability
Things To Watch Out For
- Rising input costs and competitive pricing pressures may compress margins
- Geopolitical risks and supply chain disruptions could impact operational performance
- Seasonal demand fluctuations may lead to inconsistent revenue stability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 20,404 | 19,283 | 20,943 | 23,146 | 25,677 |
| Profit Before Tax (Cr.) | 2,974 | 1,305 | 2,293 | 2,551 | 2,950 |
| PBT Margin | 14.6% | 6.8% | 10.9% | 11.0% | 11.5% |
| Net Profit (Cr.) | 2,459 | 970 | 1,716 | 1,902 | 2,193 |
| Earnings Per Share | 681.6 | 268.7 | 474.2 | 525.7 | 607.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| CLSA | ▲ Outperform | 30,500 | 27-Aug-2026 |
| Emkay Global | ► Add | 27,500 | 03-Aug-2026 |
| Goldman Sachs | ► Neutral | 28,030 | 03-Aug-2026 |
| Jeffries | ► Hold | 27,600 | 03-Aug-2026 |
| Kotak Securities | ▼ Sell | 20,100 | 03-Aug-2026 |
| Morgan Stanley | ▼ Underweight | 25,500 | 03-Aug-2026 |
| Nomura | ▲ Buy | 28,000 | 03-Aug-2026 |
| Prabhudas Liladhar | ► Accumulate | 29,085 | 03-Aug-2026 |
| Elara Capital | ▲ Buy | 31,946 | 01-Aug-2026 |
| Motilal Oswal | ► Neutral | 27,000 | 31-Jul-2026 |
| Bernstein | ► Hold | 26,800 | 02-Jul-2026 |
| HSBC | ▲ Buy | 30,780 | 01-Jul-2026 |
| ICICI Securities | ► Hold | 26,200 | 19-May-2026 |
| Deven Choksey | ► Add | 26,383 | 11-May-2026 |
| Axis Securities | ► Hold | 26,900 | 07-May-2026 |
| BOB Capital Markets | ► Hold | 27,199 | 07-May-2026 |
| BPWealth | ▲ Buy | nan | 07-May-2026 |
| Citigroup | ▲ Buy | 29,200 | 07-May-2026 |
| HDFC Securities | ► Add | 27,000 | 07-May-2026 |
| DAM Capital | ▲ Buy | 27,000 | 02-Apr-2026 |
Company Overview
Show Company Profile
Shree Cement Limited engages in the manufacture and sale of cement and clinker in India and internationally. The company provides ordinary Portland, Portland pozzolana, Portland slag, and composite cements. It also produces ready mix concrete, as well as aerated autoclaved concrete blocks, a lightweight and precast building material. The company offers its products under the Bangur brand name. In addition, it engages in the generation of power with a total capacity of 1,137 megawatts through thermal renewable, waste heat recovery, solar, and wind power plants. Shree Cement Limited was incorporated in 1979 and is headquartered in Kolkata, India.