Shree Cement Q4 Review - In-Line But Valuation Still At Premium: IDBI Capital
A bricklayer spreads cement as he builds a wall for a new home. (Photographer Simon Dawson/Bloomberg)

Shree Cement Q4 Review - In-Line But Valuation Still At Premium: IDBI Capital

Bookmark

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.

IDBI Capital Report

Shree Cement Ltd.'s Q4 FY21 Ebitda was in-line with our and consensus estimate. The company volume increase at up 19% YoY was strong.

Post the result we have increased Ebitda estimate for FY22E and FY23E by 6% and 11%.

This factors higher average selling price (as Q4 FY21 realization is up 4% QoQ), lower opex/tonne versus earlier estimate for FY22E/23E.

The company's valuation premium to UltraTech Cement Ltd. has narrowed to 35% (from the highs of 80%) versus historical average of 45%.

But expectation of weak H1 FY22 is weighing on us to have positive outlook on the stock.

Click on the attachment to read the full report:

IDBI Capital Shree Cement Q4FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.