HDFC Securities maintains 'buy' on Shree Cement
HDFC Securities has maintained its “buy” rating on the stock, saying it expects the earnings of the company to grow at a CAGR of 17% over FY08 to FY10E (estimated).
Shree Cement
cmp: Rs 493.45
target price: Rs 803
HDFC Securities has maintained its ���buy��� rating on the stock, saying it expects the earnings of the company to grow at a CAGR of 17% over FY08 to FY10E (estimated). ���We expect Q2FY09E revenues to grow by 18.2% year-on-year(Y-o-Y) to Rs 5,512 million, driven by 8.6% Y-o-Y increase in sales volume to 1.63 mt and 3.7% Y-o-Y increase in realisations to Rs 3,223 per tonne,��� said HDFC Securities in a note to its clients.
The brokerage has a cautious view on the cement sector because of repeated deadlock between the government and cement industry. ���Demand growth fell sharply in Northern region (key market of Shree Cement) to around 4% during the period April���August ���08 compared to 12% during April-August 2007.
Capacity utilisation rate during the same period declined to the levels of around 79%,��� said the note. The brokerage has maintained its EPS estimates of Rs 125 and Rs 102.7 for FY09 and FY10, respectively, for the stock.
cmp: Rs 493.45
target price: Rs 803
HDFC Securities has maintained its ���buy��� rating on the stock, saying it expects the earnings of the company to grow at a CAGR of 17% over FY08 to FY10E (estimated). ���We expect Q2FY09E revenues to grow by 18.2% year-on-year(Y-o-Y) to Rs 5,512 million, driven by 8.6% Y-o-Y increase in sales volume to 1.63 mt and 3.7% Y-o-Y increase in realisations to Rs 3,223 per tonne,��� said HDFC Securities in a note to its clients.
The brokerage has a cautious view on the cement sector because of repeated deadlock between the government and cement industry. ���Demand growth fell sharply in Northern region (key market of Shree Cement) to around 4% during the period April���August ���08 compared to 12% during April-August 2007.
Capacity utilisation rate during the same period declined to the levels of around 79%,��� said the note. The brokerage has maintained its EPS estimates of Rs 125 and Rs 102.7 for FY09 and FY10, respectively, for the stock.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
