Shree Cement: Lower realisation outlook\, weak cost control raise concerns

Shree Cement: Lower realisation outlook, weak cost control raise concerns

In Q1, Shree Cement's operating profit performance was weaker than peers led by subdued realisation outlook and weaker cost control

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Shree Cement | Q1 results

Shreepad S Aute  |  New Delhi 

Shree Cement’s June 2020 quarter (Q1) results, announced on Monday post market hours, raise margin concerns for the Street led by subdued realisation outlook and weaker cost control. This does not bode well for the stock given its expensive valuation despite a better return profile and strong balance sheet.

Shree Cement’s stock shed about 4 per cent on Tuesday in otherwise bullish markets (BSE Sensex was up 0.6 per cent). At around 24 times FY21 estimated EV/EBITDA, the stock is trading at up to 70 per cent premium to some other large cement players. While in Q1, Shree ...
First Published: Tue, August 11 2020. 20:48 IST