Buy Shree Cement; target of Rs 24,300: ICICI Direct

Buy Shree Cement; target of Rs 24,300: ICICI Direct

ICICI Direct is bullish on Shree Cement recommended buy rating on the stock with a target price of Rs 24,300 in its research report dated October 17, 2022.











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October 18, 2022 / 10:48 AM IST





ICICI Direct's research report on Shree Cement

Shree Cement is the third largest cement group in India with domestic cement capacity of 46.4 MT as of FY22. In the past four years, it has diversified itself from a 100% North player to a player with capacities now in Rajasthan, Uttarakhand, Bihar, Chhattisgarh, Haryana, UP, Karnataka and Odisha. It also has a presence in UAE with integrated cement capacity of 4 MT and 3.3 MT clinker (located near port in Ras-Al-Khaimah) • Proximity to end user market, use of split grinding units and power capacity of 742 MW (Including 211 MW WHRS) makes it most efficient player in the Industry.

Outlook

With expected revenue CAGR of 15.8% and RoIC of 18%, we remain positive on company and maintain BUY rating on the stock. We value Shree at Rs 24,300 i.e.18.5x FY24E EV/EBITDA.

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