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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Shree Cement Ltd

About the Company - Shree Cement Ltd

Shree Cements Ltd. is a Public Limited Listed company incorporated on 25/10/1979 and has its registered office in the State of Rajasthan, India. Company’s Corporate Identification Number(CIN) is L26943RJ1979PLC001935 and registration number is 001935. Currently Company is involved in the business activities of Manufacture of cement, lime and plaster. Company’s Total Operating Revenue is Rs. 14305.88 Cr. and Equity Capital is Rs. 36.08 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
CementBangur Nagar, Beawar, Ajmer District Rajasthan 305901sclbwr@shreecement.com
http://www.shreecement.com
Management
NamePosition Held
Mr. H M BangurChairman
Mr. Prashant BangurVice Chairman
Mr. Neeraj AkhouryManaging Director
Mr. Shreekant SomanyIndependent Director
Mr. Nitin Dayalji DesaiIndependent Director
Mr. Zubair AhmedIndependent Director
Mr. Sanjiv Krishnaji ShelgikarIndependent Director
Ms. Uma GhurkaIndependent Director

Shree Cements Ltd. Share Price Update

Share PriceValue
Today₹27,200.05
Previous Day₹27,245.50

Basic Stock Data of Shree Cement Ltd

Market Cap 94,532 Cr.
Current Price 26,200
High / Low30,738/22,601
Stock P/E40.2
Book Value 5,313
Dividend Yield0.37 %
ROCE8.99 %
ROE7.45 %
Face Value 10.0

Data Source: screener.in

Competitors of Shree Cement Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Heidelberg Cement India Ltd 4,714 Cr. 208247/15330.5 61.43.36 %10.7 %6.55 % 10.0
Andhra Cements Ltd 1,010 Cr. 110159/4.8811.4 36.50.00 %15.4 %% 10.0
Gujarat Sidhee Cement Ltd 296 Cr. 33.134.5/29.4 52.20.00 %6.94 %4.33 % 10.0
UltraTech Cement Ltd 2,86,638 Cr. 9,92910,526/6,99144.7 1,9450.38 %12.9 %9.63 % 10.0
ACC Ltd 50,842 Cr. 2,7072,760/1,59230.4 7890.35 %10.0 %7.06 % 10.0
Industry Average68,700.00 Cr2,597.4223.40576.820.82%11.19%5.51%10.00

Shree Cement Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales3,0533,3093,9583,4493,2063,5524,0994,2033,7814,0694,7854,9994,585
Expenses2,0462,2202,7762,4362,3082,7263,1883,3843,2583,3613,8934,0663,715
Operating Profit1,0071,0891,1821,014898826911819523708892933870
OPM %33%33%30%29%28%23%22%19%14%17%19%19%19%
Other Income83107119139150110138-22157161135162126
Interest63595554565554576871737568
Depreciation279291299232251252301328363414442308331
Profit before tax749847947867742628694412249384513710597
Tax %27%26%19%24%22%22%7%23%24%28%-6%18%18%
Net Profit547626768662578492645316190277546581491
EPS in Rs151.67173.56212.76183.40160.11136.36178.8287.4652.5576.71151.39161.06136.18

Shree Cement Ltd Quarterly Chart

Shree Cement Ltd Profit & Loss

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5,6415,4185,7156,2595,5148,5949,82611,72211,90412,66914,30616,83718,438
Expenses3,9963,8574,3254,9164,1076,0817,3549,0668,2188,67710,65613,89515,035
Operating Profit1,6461,5611,3901,3441,4072,5132,4732,6563,6863,9923,6502,9423,403
OPM %29%29%24%21%26%29%25%23%31%32%26%17%18%
Other Income15018710410267336238964260421535432584
Interest23519312912176129135247287247218269288
Depreciation8734365509258281,2158991,3921,6991,1401,0361,5461,495
Profit before tax6881,1198154011,1761,5311,8271,0811,9603,0262,9311,5592,204
Tax %10%10%3%-6%3%13%24%12%20%24%19%15%
Net Profit6181,0047874261,1431,3391,3849511,5702,3122,3771,3281,895
EPS in Rs177.54288.19225.98122.38328.13384.39397.33273.00435.19640.77658.70368.10525.34
Dividend Payout %11%7%10%20%7%36%13%22%25%9%14%27%

Shree Cement Ltd Profit & Loss Yearly Chart

Shree Cement Ltd Growth

Compounded Sales Growth
10 Years:12%
5 Years:11%
3 Years:12%
TTM:19%
Compounded Profit Growth
10 Years:8%
5 Years:-1%
3 Years:-6%
TTM:65%
Stock Price CAGR
10 Years:19%
5 Years:9%
3 Years:-1%
1 Year:2%
Return on Equity
10 Years:15%
5 Years:13%
3 Years:12%
Last Year:7%

Shree Cement Ltd Balance Sheet

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital35353535353535353636363636
Reserves2,6993,8094,6765,2426,8117,6638,8629,56312,90015,21417,23518,25219,135
Borrowings2,1641,2881,2009178811,2933,4032,7983,1442,1562,2092,8112,081
Other Liabilities9861,0281,4181,8051,7372,1752,8422,7983,2573,6333,9354,7194,958
Total Liabilities5,8846,1607,3297,9989,46311,16615,14215,19319,33821,03923,41525,81926,211
Fixed Assets1,5211,7822,1943,0043,0502,5993,5894,4764,3194,1925,3215,3335,036
CWIP971337585112647101,4271,1219629719732,3203,416
Investments2,5352,2032,2441,6633,0304,0435,4344,4448,91511,05111,54611,65111,272
Other Assets1,7312,0422,1322,8203,1183,8144,6915,1535,1414,8265,5756,5156,487
Total Assets5,8846,1607,3297,9989,46311,16615,14215,19319,33821,03923,41525,81926,211

Shree Cement Ltd Reserves and Borrowings Chart

Shree Cement Ltd Cash Flow

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1,6011,2601,4011,2391,5662,2021,8792,0603,7514,0942,7232,704
Cash from Investing Activity -1,677-270-1,234-990-1,265-2,048-3,595-813-5,373-2,868-1,865-2,409
Cash from Financing Activity 68-982-156-259-271-1671,726-1,2651,591-1,215-858-315
Net Cash Flow-8811-1031-1310-18-3111-1-20

Shree Cement Ltd Financial Efficiency Indicators

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days122119282214172325141520
Inventory Days307496703708657765743671678616693702
Days Payable7675163225207205345190251328258327
Cash Conversion Cycle243441559511472575416504453302450395
Working Capital Days-222137314555556641-1583
ROCE %21%24%18%9%18%20%18%12%16%19%17%9%

Shree Cement Ltd Financial Efficiency Indicators Chart

Shree Cement Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters62.55%62.55%62.55%62.55%62.55%62.55%62.56%62.56%62.56%62.56%62.56%62.56%
FIIs12.51%13.02%13.53%13.05%12.20%11.85%12.37%12.50%12.82%12.62%12.22%12.31%
DIIs10.80%10.48%10.11%10.50%11.16%11.23%10.96%11.79%11.58%11.83%12.37%12.37%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.16%0.17%0.17%0.17%0.17%0.17%
Public14.14%13.95%13.81%13.90%14.09%14.37%13.97%13.00%12.90%12.83%12.69%12.60%
No. of Shareholders41,63245,42343,50449,26056,83362,62858,48636,12631,21932,17627,73824,852

Shree Cement Ltd Shareholding Pattern Chart

No. of Shree Cement Ltd Shareholders

Shree Cement Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Equity Hybrid Fund7900003.532263.61
Axis ELSS Tax Saver Fund3306272.76947.36
SBI Focused Equity Fund3000002.73859.6
SBI Blue Chip Fund2750001.81787.97
Axis Focused 25 Fund2085164.14597.47
UTI Flexi Cap Fund1390711.51398.48
SBI Large & Midcap Fund1116811.69320
Kotak Emerging Equity Fund - Regular Plan574100.43164.5
SBI Long Term Equity Fund504160.77144.46
Kotak Flexicap Fund - Regular Plan500000.32143.27

Shree Cement Ltd ROCE Trend

Shree Cement Ltd EPS Trend

Shree Cement Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)352.18646.31633.54435.35288.88
Diluted EPS (Rs.)352.18646.31633.54435.35288.88
Cash EPS (Rs.)812.03965.21984.46929.01713.79
Book Value[Excl.RevalReserv]/Share (Rs.)5176.544853.264281.753669.142793.69
Book Value[Incl.RevalReserv]/Share (Rs.)5176.544853.264281.753669.142793.69
Revenue From Operations / Share (Rs.)4947.984160.083735.123566.633603.52
PBDIT / Share (Rs.)947.501179.001252.141117.93873.55
PBIT / Share (Rs.)487.23861.40902.26616.88451.10
PBT / Share (Rs.)414.37801.50832.62536.10328.83
Net Profit / Share (Rs.)351.76647.62634.59427.95291.35
NP After MI And SOA / Share (Rs.)352.19646.32633.55425.68288.86
PBDIT Margin (%)19.1428.3433.5231.3424.24
PBIT Margin (%)9.8420.7024.1517.2912.51
PBT Margin (%)8.3719.2622.2915.039.12
Net Profit Margin (%)7.1015.5616.9811.998.08
NP After MI And SOA Margin (%)7.1115.5316.9611.938.01
Return on Networth / Equity (%)6.8113.3514.8411.6610.40
Return on Capital Employeed (%)8.9616.3018.2713.9711.75
Return On Assets (%)4.829.8110.627.706.49
Long Term Debt / Equity (X)0.030.070.080.120.23
Total Debt / Equity (X)0.130.110.110.170.28
Asset Turnover Ratio (%)0.670.630.610.680.77
Current Ratio (X)1.331.812.211.972.22
Quick Ratio (X)0.921.271.751.541.34
Inventory Turnover Ratio (X)2.782.151.801.892.31
Dividend Payout Ratio (NP) (%)25.5516.240.0033.7819.03
Dividend Payout Ratio (CP) (%)11.0710.890.0015.517.73
Earning Retention Ratio (%)74.4583.760.0066.2280.97
Cash Earning Retention Ratio (%)88.9389.110.0084.4992.27
Interest Coverage Ratio (X)13.0019.6817.9813.8412.28
Interest Coverage Ratio (Post Tax) (X)5.8311.8110.116.305.81
Enterprise Value (Cr.)96865.5488341.92107530.3065213.9467328.02
EV / Net Operating Revenue (X)5.435.897.985.075.36
EV / EBITDA (X)28.3420.7723.8016.1722.12
MarketCap / Net Operating Revenue (X)5.295.777.894.935.17
Retention Ratios (%)74.4483.750.0066.2180.96
Price / BV (X)5.074.966.914.816.71
Price / Net Operating Revenue (X)5.295.777.894.935.17
EarningsYield0.010.020.020.020.01

Shree Cement Ltd Profitability Ratios (%)

Shree Cement Ltd Liquidity Ratios

Shree Cement Ltd Liquidity Ratios (%)

Shree Cement Ltd Interest Coverage Ratios (X)

Shree Cement Ltd Valuation Ratios

Fair Value / Intrinsic Value of Shree Cement Ltd

Fair Value: ₹15970.78

The stock is overvalued by 39.04% compared to the current price ₹26200

*Investments are subject to market risks

Strength and Weakness of Shree Cement Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 16.75%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 27.08, which is a positive sign.
  3. The company has higher reserves (10,158.54 cr) compared to borrowings (2,026.54 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (9.62 cr) and profit (147.54 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 663.77 and average Dividend Yield of 16.90%.
  2. The stock has a high average Cash Conversion Cycle of 443.42, which may not be favorable.

Should I Buy Shree Cement Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Shree Cement Ltd:
    1. Net Profit Margin: 7.10%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 8.96% (Industry Average ROCE: 13.71%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 5.83
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.92
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 40.6 (Industry average Stock P/E: 33.9)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.13
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Shree Cement Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE