JM Financial recommended hold rating on Shree Cement with a target price of Rs 16720 in its research report dated April 29, 2018.
Broker Research
JM Financial's research report on Shree Cement
Shree Cement (Shree) reported 18% YoY growth in cement revenues primarily on volume growth (+8.7% YoY) and realisation growth (+10.3% YoY). EBITDA grew at 17% and EBITDA/t grew at 18% aided by realisation growth and lower other expenses partially offset by power/fuel and freight cost escalations. Power revenues declined YoY on lower power unit sales.
Outlook
We value SRCM’s existing assets at 12x EVE. Additionally, we factor in a value of INR 1,447/share on its expansion potential. TP of INR 16,720. Maintain HOLD.For all recommendations report, click here
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