HDFC Securities recommended reduce rating on Shree Cement with a target price of Rs 20,900 in its research report dated August 11, 2020.
HDFC Securities' research report on Shree Cement
Shree Cement’s (SRCM) standalone revenue/EBITDA fell 23/22% YoY to Rs 23.26/7.01bn, and APAT grew 2% YoY to Rs 3.71bn. It reported lower-than-estimated EBITDA in 1QFY21, on slower NSR gain QoQ. Unitary EBITDA cooled off 9% QoQ (-1% YoY) to Rs 1,421/MT. The COVID impact also led to an EBITDA loss at the UAE subsidiary.
Outlook
Despite the volume decline in FY21E, we expect SRCM’s standalone margin to expand on stable realisation and lower input costs. We maintain our REDUCE rating with an unchanged target price of Rs 20,900.
For all recommendations report, click here
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