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Last Updated on: 10 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Shree Cement Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 9, 2024, 10:13 pm

Market Cap 96,543 Cr.
Current Price 26,711
High / Low30,738/23,500
Stock P/E53.4
Book Value 5,710
Dividend Yield0.39 %
ROCE15.4 %
ROE12.8 %
Face Value 10.0
PEG Ratio5.64

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Shree Cement Ltd

Competitors of Shree Cement Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 71.3 Cr. 21.935.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,40,963 Cr. 11,81512,138/9,25051.9 2,1260.59 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 23,986 Cr. 1,0141,058/70087.0 3020.25 %8.17 %5.63 % 1.00
The India Cements Ltd 10,715 Cr. 346386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 7,983 Cr. 198256/16340.4 67.90.00 %16.5 %11.5 % 1.00
Industry Average36,061.00 Cr1,916.7335.34530.040.58%11.09%16.06%7.13

All Competitor Stocks of Shree Cement Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales3,9583,4493,2063,5524,0994,2033,7814,0694,7854,9994,5854,9015,101
Expenses2,7762,4362,3082,7263,1883,3843,2583,3613,8934,0663,7153,6673,774
Operating Profit1,1821,0148988269118195237088929338701,2341,327
OPM %30%29%28%23%22%19%14%17%19%19%19%25%26%
Other Income119139150110138-22157161135162126135138
Interest55545655545768717375685665
Depreciation299232251252301328363414442308331347628
Profit before tax947867742628694412249384513710597966772
Tax %19%24%22%22%7%23%24%28%-6%18%18%24%14%
Net Profit768662578492645316190277546581491734662
EPS in Rs212.76183.40160.11136.36178.8287.4652.5576.71151.39161.06136.18203.50183.41

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales5,4185,7156,2595,5148,5949,82611,72211,90412,66914,30616,83719,586
Expenses3,8574,3254,9164,1076,0817,3549,0668,2188,67710,65613,89515,220
Operating Profit1,5611,3901,3441,4072,5132,4732,6563,6863,9923,6502,9424,365
OPM %29%24%21%26%29%25%23%31%32%26%17%22%
Other Income18710410267336238964260421535432560
Interest19312912176129135247287247218269264
Depreciation4365509258281,2158991,3921,6991,1401,0361,5461,615
Profit before tax1,1198154011,1761,5311,8271,0811,9603,0262,9311,5593,046
Tax %10%3%-6%3%13%24%12%20%24%19%15%19%
Net Profit1,0047874261,1431,3391,3849511,5702,3122,3771,3282,468
EPS in Rs288.19225.98122.38328.13384.39397.33273.00435.19640.77658.70368.10684.14
Dividend Payout %7%10%20%7%36%13%22%25%9%14%27%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)17.15%3.36%-31.29%65.09%47.26%2.81%-44.13%85.84%
Change in YoY Net Profit Growth (%)0.00%-13.79%-34.65%96.38%-17.83%-44.45%-46.94%129.97%

Shree Cement Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:14%
5 Years:11%
3 Years:16%
TTM:1%
Compounded Profit Growth
10 Years:11%
5 Years:18%
3 Years:3%
TTM:-5%
Stock Price CAGR
10 Years:12%
5 Years:6%
3 Years:0%
1 Year:-6%
Return on Equity
10 Years:14%
5 Years:13%
3 Years:12%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:40 pm

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital35353535353535363636363636
Reserves3,8094,6765,2426,8117,6638,8629,56312,90015,21417,23518,25220,34820,565
Borrowings1,2881,2009178811,2933,4032,7983,1442,1562,2092,8111,7521,758
Other Liabilities1,0281,4181,8051,7372,1752,8422,7983,2573,6333,9354,7195,2825,026
Total Liabilities6,1607,3297,9989,46311,16615,14215,19319,33821,03923,41525,81927,41927,385
Fixed Assets1,7822,1943,0043,0502,5993,5894,4764,3194,1925,3215,3337,0997,293
CWIP1337585112647101,4271,1219629719732,3201,8332,377
Investments2,2032,2441,6633,0304,0435,4344,4448,91511,05111,54611,65110,6759,961
Other Assets2,0422,1322,8203,1183,8144,6915,1535,1414,8265,5756,5157,8127,753
Total Assets6,1607,3297,9989,46311,16615,14215,19319,33821,03923,41525,81927,41927,385

Reserves and Borrowings Chart

Cash Flow

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1,2601,4011,2391,5662,2021,8792,0603,7514,0942,7232,7043,304
Cash from Investing Activity +-270-1,234-990-1,265-2,048-3,595-813-5,373-2,868-1,865-2,409-1,350
Cash from Financing Activity +-982-156-259-271-1671,726-1,2651,591-1,215-858-315-1,794
Net Cash Flow811-1031-1310-18-3111-1-20160

Free Cash Flow

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow0.000.00-916.00-880.001.00-1.000.000.001.001.000.003.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days211928221417232514152017
Inventory Days496703708657765743671678616693702627
Days Payable75163225207205345190251328258327212
Cash Conversion Cycle441559511472575416504453302450395432
Working Capital Days2137314555556641-158311
ROCE %24%18%9%18%20%18%12%16%19%17%9%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters62.55%62.55%62.55%62.55%62.56%62.56%62.56%62.56%62.56%62.56%62.56%62.56%
FIIs13.53%13.05%12.20%11.85%12.37%12.50%12.82%12.62%12.22%12.31%12.47%11.85%
DIIs10.11%10.50%11.16%11.23%10.96%11.79%11.58%11.83%12.37%12.37%12.14%12.78%
Government0.00%0.00%0.00%0.00%0.16%0.17%0.17%0.17%0.17%0.17%0.18%0.23%
Public13.81%13.90%14.09%14.37%13.97%13.00%12.90%12.83%12.69%12.60%12.64%12.59%
No. of Shareholders43,50449,26056,83362,62858,48636,12631,21932,17627,73824,85228,26826,744

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Equity Hybrid Fund790,0003.532263.61111,6812024-12-07607.37%
Axis ELSS Tax Saver Fund330,6272.76947.36111,6812024-12-07196.05%
SBI Focused Equity Fund300,0002.73859.6111,6812024-12-07168.62%
SBI Blue Chip Fund275,0001.81787.97111,6812024-12-07146.24%
Axis Focused 25 Fund208,5164.14597.47111,6812024-12-0786.71%
UTI Flexi Cap Fund139,0711.51398.48111,6812024-12-0724.53%
SBI Large & Midcap Fund111,6811.69320111,6812024-12-070%
Kotak Emerging Equity Fund - Regular Plan57,4100.43164.5111,6812024-12-07-48.59%
SBI Long Term Equity Fund50,4160.77144.46111,6812024-12-07-54.86%
Kotak Flexicap Fund - Regular Plan50,0000.32143.27111,6812024-12-07-55.23%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)663.98352.18646.31633.54435.35
Diluted EPS (Rs.)663.98352.18646.31633.54435.35
Cash EPS (Rs.)1189.99812.03965.21984.46929.01
Book Value[Excl.RevalReserv]/Share (Rs.)5749.465176.544853.264281.753669.14
Book Value[Incl.RevalReserv]/Share (Rs.)5749.465176.544853.264281.753669.14
Revenue From Operations / Share (Rs.)5687.634947.984160.083735.123566.63
PBDIT / Share (Rs.)1417.64947.501179.001252.141117.93
PBIT / Share (Rs.)891.78487.23861.40902.26616.88
PBT / Share (Rs.)820.18414.37801.50832.62536.10
Net Profit / Share (Rs.)664.12351.76647.62634.59427.95
NP After MI And SOA / Share (Rs.)664.00352.19646.32633.55425.68
PBDIT Margin (%)24.9219.1428.3433.5231.34
PBIT Margin (%)15.679.8420.7024.1517.29
PBT Margin (%)14.428.3719.2622.2915.03
Net Profit Margin (%)11.677.1015.5616.9811.99
NP After MI And SOA Margin (%)11.677.1115.5316.9611.93
Return on Networth / Equity (%)11.576.8113.3514.8411.66
Return on Capital Employeed (%)14.748.9616.3018.2713.97
Return On Assets (%)8.574.829.8110.627.70
Long Term Debt / Equity (X)0.030.030.070.080.12
Total Debt / Equity (X)0.070.130.110.110.17
Asset Turnover Ratio (%)0.750.670.630.610.68
Current Ratio (X)1.991.331.812.211.97
Quick Ratio (X)1.410.921.271.751.54
Inventory Turnover Ratio (X)2.532.782.151.801.89
Dividend Payout Ratio (NP) (%)15.8125.5516.240.0033.78
Dividend Payout Ratio (CP) (%)8.8211.0710.890.0015.51
Earning Retention Ratio (%)84.1974.4583.760.0066.22
Cash Earning Retention Ratio (%)91.1888.9389.110.0084.49
Interest Coverage Ratio (X)19.8013.0019.6817.9813.84
Interest Coverage Ratio (Post Tax) (X)10.285.8311.8110.116.30
Enterprise Value (Cr.)93833.3696865.5488341.92107530.3065213.94
EV / Net Operating Revenue (X)4.575.435.897.985.07
EV / EBITDA (X)18.3528.3420.7723.8016.17
MarketCap / Net Operating Revenue (X)4.525.295.777.894.93
Retention Ratios (%)84.1874.4483.750.0066.21
Price / BV (X)4.485.074.966.914.81
Price / Net Operating Revenue (X)4.525.295.777.894.93
EarningsYield0.020.010.020.020.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Shree Cement Ltd as of December 10, 2024 is: 39,181.21

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 10, 2024, Shree Cement Ltd is Undervalued by 46.69% compared to the current share price 26,711.00

Intrinsic Value of Shree Cement Ltd as of December 10, 2024 is: 42,891.48

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 10, 2024, Shree Cement Ltd is Undervalued by 60.58% compared to the current share price 26,711.00

Last 5 Year EPS CAGR: 9.47%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.25%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 29.83, which is a positive sign.
  3. The company has higher reserves (11,626.15 cr) compared to borrowings (1,970.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (10.08 cr) and profit (102.58 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 459.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Shree Cement Ltd:
    1. Net Profit Margin: 11.67%
      • 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: 14.74% (Industry Average ROCE: 11.09%)
      • 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. ROE%: 11.57% (Industry Average ROE: 14.99%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 10.28
      • 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.
    5. Quick Ratio: 1.41
      • 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.
    6. Stock P/E: 53.4 (Industry average Stock P/E: 21.21)
      • 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.
    7. Total Debt / Equity: 0.07
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

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, 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. Zubair AhmedIndependent Director
Mr. Shreekant SomanyIndependent Director
Mr. Sushil Kumar RoongtaIndependent Director
Ms. Uma GhurkaIndependent Director
Mr. Sanjiv Krishnaji ShelgikarIndependent Director

FAQ

What is the latest intrinsic value of Shree Cement Ltd?

The latest intrinsic value of Shree Cement Ltd as on 10 December 2024 is ₹39181.21, which is 46.69% higher than the current market price of ₹26,711.00. The stock has a market capitalization of 96,543 Cr. and recorded a high/low of ₹30,738/23,500 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹20,565 Cr and total liabilities of ₹27,385 Cr.

What is the Market Cap of Shree Cement Ltd?

The Market Cap of Shree Cement Ltd is 96,543 Cr..

What is the current Stock Price of Shree Cement Ltd as on 10 December 2024?

The current stock price of Shree Cement Ltd as on 10 December 2024 is 26,711.

What is the High / Low of Shree Cement Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Shree Cement Ltd stocks is 30,738/23,500.

What is the Stock P/E of Shree Cement Ltd?

The Stock P/E of Shree Cement Ltd is 53.4.

What is the Book Value of Shree Cement Ltd?

The Book Value of Shree Cement Ltd is 5,710.

What is the Dividend Yield of Shree Cement Ltd?

The Dividend Yield of Shree Cement Ltd is 0.39 %.

What is the ROCE of Shree Cement Ltd?

The ROCE of Shree Cement Ltd is 15.4 %.

What is the ROE of Shree Cement Ltd?

The ROE of Shree Cement Ltd is 12.8 %.

What is the Face Value of Shree Cement Ltd?

The Face Value of Shree Cement Ltd is 10.0.

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