Shree Cement Ltd
SHREECEM NSE
Shree Cement Ltd
Commodities F&ONSE: SHREECEM BSE: 500387 Cement & Cement Products
Shree Cement is engaged in manufacturing and selling of cement and cement related products and is ** one of the lowest cost producers in the country. It is the 3rd largest** cement producer in India with an installed capacity of 46.4 MTPA. [1]
AI Verdict: HOLD Confidence: 5%
Shree Cement trades at a steep PE of 52.4x with ROE of just 8% over 3 years, making valuation hard to justify despite its debt-free balance sheet. The stock has delivered negative 3-year CAGR of -1% and 5-year CAGR of -3%, signaling sustained underperformance relative to broader markets.
Key Fundamentals
Volatility
Moderate
P/E Ratio
53.25
EBITDA
₹4,638 Cr
Return on Equity
11.55%
Debt to Equity
0.06
EPS
₹582.58
52W High
₹32,490
52W Low
₹22,550
Technical Indicators
Key Insights
Strengths
2- Company is almost debt free.
- Company has been maintaining a healthy dividend payout of 27.4%
Weaknesses
4- Stock is trading at 4.04 times its book value
- The company has delivered a poor sales growth of 9.08% over past five years.
- Company has a low return on equity of 8.34% over last 3 years.
- Working capital days have increased from 45.0 days to 135 days
Growth Rate
Revenue Growth
5.39% ↘
Net Income Growth
52.66% ↘
Cash Flow Change
46.99% ↗
ROE
-54.89% ↘
ROCE
-54.75% ↘
EBITDA Margin (Avg.)
-5.67% ↘
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoHOLD
Risk medium
Shree Cement trades at a steep PE of 52.4x with ROE of just 8% over 3 years, making valuation hard to justify despite its debt-free balance sheet. The stock has delivered negative 3-year CAGR of -1% and 5-year CAGR of -3%, signaling sustained underperformance relative to broader markets.
Bull Case 7
- Company is almost debt-free, providing significant financial flexibility and resilience during cyclical downturns in the cement industry
- TTM profit growth of 56% indicates a sharp earnings recovery, likely driven by improved realizations and cost optimization
- 10-year sales CAGR of 14% demonstrates long-term revenue compounding ability and capacity expansion execution
- Healthy dividend payout ratio of 27.4% reflects shareholder-friendly capital allocation despite being in a capital-intensive sector
- 50% of analysts (20 out of 40) have a Buy rating, indicating majority consensus leans positive on medium-term outlook
- 10-year stock CAGR of 6% shows the company has created wealth over longer holding periods despite recent weakness
- Market cap of Rs 91,411 crore positions it as a large-cap with institutional ownership and liquidity advantages
Bear Case 8
- PE ratio of 52.4x is significantly above the cement sector average of 25-30x, leaving limited margin of safety
- 3-year ROE of just 8% is below cost of equity for most investors, indicating poor capital efficiency
- Working capital days have ballooned from 45 days to 135 days, a 3x deterioration signaling operational inefficiency or channel stress
- 5-year compounded profit growth is negative at -5%, meaning earnings have actually declined over a meaningful period
- Stock has delivered -13% return over the past 1 year, significantly underperforming market indices
- 5-year sales growth of just 9% is poor for a cement company operating in a high-infrastructure-spend economy like India
- Price-to-book of 3.94x is expensive for a business generating only 8% ROE, implying negative economic value added
- 17.5% of analysts (7 out of 40) have a Sell rating, which is relatively high for a large-cap stock
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago Headwinds 1
- ₹67 crore GST demand reinstated Jun 24
Appeal against GST demand dismissed by Additional Commissioner (Appeals), SGST, Patna, reinstating ~₹67 crore tax demand across two orders citing valuation issues and excess ITC. Company plans to appeal before GST Appellate Tribunal.
Positives 2
- Pricing discipline improving industry-wide Jun 8
Shree Cement leadership stated volume growth now linked to higher prices, with industry seeing ~3% annual price rises. Co-Chairman expects cement industry consolidation to continue, supporting structural pricing power.
- Promoters hold zero encumbrance Jun 6
Promoters held no encumbrance on shares in FY26 as disclosed under SEBI regulations on April 3, 2026, signaling strong promoter confidence and no pledge-related risk.
Neutral 3
- ₹59.70 crore block trade on NSE Jun 10
Block trade of ~25,495 shares executed at ₹23,415 per share totaling ₹59.70 crore, likely institutional rebalancing outside regular order book.
- Investor meeting scheduled June 9 Jun 4
Shree Cement held institutional investor meeting in Mumbai on June 9, 2026. No unpublished price sensitive information was shared.
- Gaurav Jain appointment advanced May 28
Appointment of Gaurav Jain as Head - Corporate Affairs advanced to June 1, 2026. Revised terms eliminated need for shareholder approval.
TL;DR: Shree Cement faces a modest ₹67 crore GST demand but management considers it non-material and will appeal. On the positive side, industry pricing discipline is improving with ~3% annual price hikes and ongoing consolidation favoring large players like Shree Cement. Promoter shares remain unencumbered, removing pledge risk. The outlook is stable with pricing trends and consolidation providing a supportive backdrop for medium-term earnings growth.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 5,100 | 5,036 | 4,774 | 5,193 | 5,401 | 5,124 | 4,054 | 4,573 | 5,532 | 5,281 | 4,761 | 4,801 | 6,101 |
| Expenses | 4,211 | 4,091 | 3,888 | 3,930 | 3,979 | 4,197 | 3,441 | 3,608 | 4,103 | 3,948 | 3,787 | 3,853 | 4,717 |
| Operating Profit | 889 | 945 | 886 | 1,264 | 1,422 | 927 | 613 | 965 | 1,429 | 1,333 | 974 | 947 | 1,384 |
| OPM % | 17% | 19% | 19% | 24% | 26% | 18% | 15% | 21% | 26% | 25% | 20% | 20% | 23% |
| Other Income | 146 | 169 | 132 | 147 | 150 | 139 | 181 | 111 | 158 | 235 | 179 | 146 | 101 |
| Interest | 71 | 74 | 67 | 55 | 62 | 56 | 56 | 52 | 41 | 46 | 51 | 59 | 56 |
| Depreciation | 473 | 339 | 412 | 444 | 702 | 704 | 716 | 799 | 788 | 654 | 668 | 710 | 762 |
| PBT | 491 | 700 | 539 | 913 | 807 | 306 | 23 | 225 | 758 | 868 | 434 | 324 | 667 |
| Tax % | -7% | 18% | 17% | 23% | 16% | 9% | -229% | 14% | 24% | 26% | 29% | 17% | 21% |
| Net Profit | 525 | 572 | 447 | 702 | 676 | 278 | 77 | 194 | 575 | 644 | 310 | 268 | 528 |
| EPS in Rs | 146 | 159 | 124 | 195 | 187 | 77.22 | 21.19 | 53.6 | 159 | 178 | 85.51 | 73.92 | 146 |
Profit & Loss
| Jun 2015 | Mar 2016 9m | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 6,259 | 5,514 | 8,594 | 9,833 | 12,555 | 12,868 | 13,560 | 15,010 | 17,852 | 20,404 | 19,283 | 20,943 |
| Expenses | 4,916 | 4,107 | 6,081 | 7,360 | 9,758 | 9,098 | 9,468 | 11,300 | 14,893 | 15,887 | 15,349 | 16,306 |
| Operating Profit | 1,344 | 1,407 | 2,513 | 2,473 | 2,797 | 3,771 | 4,091 | 3,710 | 2,960 | 4,517 | 3,934 | 4,638 |
| OPM % | 21% | 26% | 29% | 25% | 22% | 29% | 30% | 25% | 17% | 22% | 20% | 22% |
| Other Income | 102 | 673 | 362 | 389 | 69 | 263 | 426 | 544 | 459 | 598 | 589 | 661 |
| Interest | 121 | 76 | 129 | 135 | 248 | 291 | 251 | 216 | 263 | 258 | 205 | 212 |
| Depreciation | 925 | 828 | 1,215 | 899 | 1,472 | 1,808 | 1,262 | 1,146 | 1,661 | 1,897 | 3,007 | 2,794 |
| PBT | 401 | 1,176 | 1,531 | 1,827 | 1,146 | 1,934 | 3,004 | 2,892 | 1,495 | 2,959 | 1,312 | 2,293 |
| Tax % | -6% | 3% | 13% | 24% | 11% | 20% | 24% | 19% | 15% | 19% | 14% | 24% |
| Net Profit | 426 | 1,143 | 1,339 | 1,384 | 1,015 | 1,544 | 2,290 | 2,337 | 1,269 | 2,396 | 1,124 | 1,749 |
| EPS in Rs | 122 | 328 | 384 | 397 | 289 | 426 | 634 | 646 | 352 | 664 | 311 | 483 |
| Div. Payout % | 20% | 7% | 36% | 13% | 21% | 26% | 9% | 14% | 28% | 16% | 35% | 31% |
Balance Sheet
| Jun 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 35 | 35 | 35 | 35 | 35 | 36 | 36 | 36 | 36 | 36 | 36 | 36 |
| Reserves | 5,241 | 6,811 | 7,663 | 8,862 | 9,636 | 13,133 | 15,361 | 17,424 | 18,600 | 20,667 | 21,502 | 23,231 |
| Borrowings | 917 | 881 | 1,293 | 3,403 | 2,803 | 3,146 | 2,230 | 2,129 | 2,725 | 1,656 | 1,046 | 1,868 |
| Other Liabilities | 1,805 | 1,737 | 2,175 | 2,842 | 3,019 | 3,629 | 3,886 | 4,159 | 4,973 | 5,566 | 5,880 | 6,340 |
| Total Liabilities | 7,998 | 9,463 | 11,166 | 15,142 | 15,493 | 19,944 | 21,513 | 23,749 | 26,334 | 27,925 | 28,464 | 31,476 |
| Fixed Assets | 3,004 | 3,050 | 2,599 | 3,589 | 6,182 | 6,163 | 6,216 | 7,282 | 7,481 | 9,591 | 9,315 | 11,207 |
| CWIP | 511 | 264 | 710 | 1,427 | 1,129 | 1,197 | 997 | 1,054 | 2,797 | 1,930 | 3,796 | 1,466 |
| Investments | 1,662 | 3,030 | 4,042 | 5,434 | 2,286 | 6,358 | 8,500 | 9,033 | 8,683 | 7,556 | 7,849 | 10,272 |
| Other Assets | 2,820 | 3,118 | 3,814 | 4,691 | 5,896 | 6,227 | 5,800 | 6,380 | 7,373 | 8,848 | 7,504 | 8,531 |
| Total Assets | 7,998 | 9,463 | 11,166 | 15,142 | 15,493 | 19,944 | 21,513 | 23,749 | 26,334 | 27,925 | 28,464 | 31,476 |
Cash Flow
| Jun 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 1,239 | 1,566 | 2,202 | 1,879 | 2,080 | 3,973 | 4,254 | 2,668 | 2,569 | 3,347 | 4,920 | 3,794 |
| Investing | -990 | -1,265 | -2,048 | -3,595 | -720 | -5,590 | -2,651 | -2,143 | -2,405 | -1,418 | -3,726 | -3,740 |
| Financing | -259 | -271 | -167 | 1,726 | -1,276 | 1,581 | -1,233 | -849 | -277 | -1,710 | -1,296 | -110 |
| Net Cash Flow | -10 | 31 | -13 | 10 | 84 | -36 | 370 | -324 | -113 | 220 | -102 | -55 |
| Free Cash Flow | 115 | 832 | 922 | -648 | 158 | 2,433 | 3,125 | 459 | -710 | 178 | 837 | 1,979 |
| CFO/OP | 99 | 121 | 99 | 96 | 83 | 118 | 122 | 77 | 98 | 84 | 136 | 89 |
Ratios
| Jun 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 28 | 22 | 14 | 17 | 30 | 31 | 18 | 19 | 25 | 23 | 27 | 32 |
| Inventory Days | 708 | 657 | 765 | 743 | 672 | 631 | 585 | 878 | 703 | 670 | 444 | 469 |
| Days Payable | 225 | 207 | 205 | 345 | 193 | 242 | 301 | 313 | 305 | 229 | 247 | 274 |
| Cash Conversion Cycle | 511 | 472 | 575 | 416 | 509 | 420 | 302 | 584 | 423 | 464 | 223 | 227 |
| Working Capital Days | 18 | 32 | 22 | 11 | 62 | 5 | -21 | -1 | -27 | 7 | -8 | 135 |
| ROCE % | 9% | 18% | 20% | 18% | 13% | 15% | 19% | 17% | 9% | 15% | 7% | 10% |
Documents
1
Announcement under Regulation 30 (LODR)-Earnings Call Transcript
9h - Transcript of the Conference Call held on 6th May, 2026, relating to Financial Results of the Company for the quarter ended 31st March, 2026 9h - Transcript of the Conference Call held on 6th May, 2026, relating to Financial Results of the Company for the quarter ended 31st March, 2026
2
Announcement under Regulation 30 (LODR)-Newspaper Publication
7 May - Newspaper Advertisement for publication of Financial results of the Company for the Quarter and Year ended 31st March, 2026 7 May - Newspaper Advertisement for publication of Financial results of the Company for the Quarter and Year ended 31st March, 2026
3
Board Meeting Outcome for Approval Of Audited Financial Results For The Quarter And Year Ended 31St March, 2026 And Recommendation Of Final Dividend
10h - FY26 audited results approved; Rs70 final dividend recommended; 3.5 MTPA Karnataka plant commissioned. 10h - FY26 audited results approved; Rs70 final dividend recommended; 3.5 MTPA Karnataka plant commissioned.
4
Financial Results For The Quarter And Year Ended 31St March, 2026
6 May - Board approved FY26 audited results, recommended Rs 70 dividend, and commissioned 3.5 MTPA Kodla cement plant. 6 May - Board approved FY26 audited results, recommended Rs 70 dividend, and commissioned 3.5 MTPA Kodla cement plant.
5
Announcement under Regulation 30 (LODR)-Press Release / Media Release
6 May - Shree Cement reported Q4FY26 results, commissioned 3.65 MTPA Kodla plant, and recommended ₹70 final dividend. 6 May - Shree Cement reported Q4FY26 results, commissioned 3.65 MTPA Kodla plant, and recommended ₹70 final dividend.
Frequently Asked Questions about Shree Cement Ltd
What does Shree Cement Ltd do?
Shree Cement is engaged in manufacturing and selling of cement and cement related products and is ** one of the lowest cost producers in the country. It is the 3rd largest** cement producer in India with an installed capacity of 46.4 MTPA. [1]
Where is Shree Cement Ltd (SHREECEM) listed?
Shree Cement Ltd is listed on the Indian stock exchanges. It is listed on NSE: SHREECEM and BSE: 500387. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Shree Cement Ltd belong to?
Shree Cement Ltd operates in the Commodities sector within the Cement & Cement Products industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the PE ratio of Shree Cement Ltd?
The Price-to-Earnings (PE) ratio of Shree Cement Ltd is 53.25. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Shree Cement Ltd?
Over the past 52 weeks, Shree Cement Ltd has traded between a low of ₹22,550 and a high of ₹32,490. This range helps investors understand the stock's price volatility and recent trading levels.
What is the Return on Equity (ROE) of Shree Cement Ltd?
Shree Cement Ltd has a Return on Equity (ROE) of 11.55%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Shree Cement Ltd on Tapetide?
On Tapetide, you can view Shree Cement Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.
Company Information
Shree Cement is engaged in manufacturing and selling of cement and cement related products and is ** one of the lowest cost producers in the country. It is the 3rd largest** cement producer in India with an installed capacity of 46.4 MTPA. [1]
Website shreecement.com
CEO Mr. Hari Mohan Bangur
Employees 7,022
Listed 1995-04-26
Face Value ₹ 10
Issued Size 3,60,80,748