PTICentrum Broking has given sell rating to Shree Cements with a target price of Rs 15,822. The share price moved up by 1.42 per cent from its previous close of Rs 19502.40. The stock’s last traded price is Rs 19779.65.
Shree Cements Ltd., incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 70916.71 Crore) operating in Cement sector.
Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 2480.14 Crore, down 27.38 % from last quarter Sales of Rs 3415.14 Crore and down 24.91 % from last year same quarter Sales of Rs 3302.79 Crore. The Company reported net profit after tax of Rs 330.35 Crore in latest quarter.
Investment Rationale
The brokerage values SRCM at Rs15,822/mn tonne (from Rs15,343 earlier) based on replacement cost method assigning 50% premium. It factors only the clinker based capacity. It feels SRCM is likely to shift its focus back on the volumes and new capacity expansion will be announced post attaining healthy capacity utilization. The stock currently trades at an EV/tn of Rs16.2bn (FY22E capacity), which is at a premium, it maintains Sell rating on the stock.
Promoter/FII Holdings
Promoters held 62.6 per cent stake in the company as of June 30, 2020, while FIIs held 11.6 per cent, DIIs 8.8 per cent and public and other 17.1 per cent.
Shree Cements Ltd., incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 70916.71 Crore) operating in Cement sector.
Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 2480.14 Crore, down 27.38 % from last quarter Sales of Rs 3415.14 Crore and down 24.91 % from last year same quarter Sales of Rs 3302.79 Crore. The Company reported net profit after tax of Rs 330.35 Crore in latest quarter.
Investment Rationale
The brokerage values SRCM at Rs15,822/mn tonne (from Rs15,343 earlier) based on replacement cost method assigning 50% premium. It factors only the clinker based capacity. It feels SRCM is likely to shift its focus back on the volumes and new capacity expansion will be announced post attaining healthy capacity utilization. The stock currently trades at an EV/tn of Rs16.2bn (FY22E capacity), which is at a premium, it maintains Sell rating on the stock.
Promoter/FII Holdings
Promoters held 62.6 per cent stake in the company as of June 30, 2020, while FIIs held 11.6 per cent, DIIs 8.8 per cent and public and other 17.1 per cent.