Shree Cement Q3 Earnings Driven By Volume Growth, Margin Expansion: Prabhudas Lilladher

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Prabhudas Lilladher Report

Shree Cement Ltd. reported Q3 FY21 Ebitda in line with our estimates. While it beat consensus estimates by 8.5%.

The company has evolved as a mature player over the last couple of years with discipline on both volumes and prices in its North markets (constitutes two-third of its volumes). This is reflected in the highest-ever margins since FY09.

However, expensive valuations (enterprise value/Ebitda of 18 times FY22e/16.0 times FY23e) continue to deter buying opportunity in the stock.

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