Buy Shree Cement target of Rs 26000: Sharekhan
Sharekhan’s research report on Shree Cement
During Q3FY2020, Shree Cement’s adjusted standalone net profit grew by 10% y-o-y, led by healthy performance from the cement division, while power reported operating loss due to weak realisation. Shree Cement’s capacity expansion plan to reach 60MTPA in four years from the current 46MTPA remains on track. The company recently raised Rs. 2,400 crore through QIP to aid in future growth plans. Shree Cement’s continuous capacity expansion plan with nil rise in leverage is likely to aid in healthy net earnings growth over the next two years.
We retain our Buy rating on Shree Cement Limited (Shree Cement) with a revised PT of Rs. 26,000, rolling forward our valuation multiple to FY2022E earnings.
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