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Shree Cement Q2 Review - Good Quarter, Fair Valuation: Dolat Capital

Shree Cement Q2 Review - Good Quarter, Fair Valuation: Dolat Capital

<div class="paragraphs"><p>A worker holds up processed cement at a factory. (Photographer: Dario Pignatelli/Bloomberg)</p></div>
A worker holds up processed cement at a factory. (Photographer: Dario Pignatelli/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Shree Cement Ltd. reported revenue and Ebitda broadly in line; adjusted profit after tax, realisation and Ebitda/tonne above estimates, however volume below estimates.

The company posted 5.0% YoY growth in revenue to Rs 32.1 billion led by 8.6% YoY increase in realisation to Rs 5,076/tonne which was offset by decline in volume by 3.3% YoY to 6.3 million tonne.

Ebitda down 10.8% YoY to Rs 9.0 billion and adjusted profit after tax up 5.6% YoY to Rs 5.8 billion in Q2 FY22.

We believe Shree Cement is on the right track by adding capacity at regular intervals to improve its dominance on the market.

Shree Cement has long-term plan to double its capacity to 80 million tonne per annum over next six to seven years with medium term plan to increase to 57 mtpa over three years from 43.4 mtpa (3 mtpa Odisha grinding unit commenced in Mar’21) in FY21.

Click on the attachment to read the full report:

Dolat Capital Shree Cement Q2FY22 Result Update.pdf

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