Add Shree Cements, target Rs 18,500: IIFL Institutional Equities

IIFL Institutional Equities has an add call on Shree Cements with a target price of Rs 18,500.

The current market price of Shree Cements is Rs 17597.85.

The brokerage said given the likely improvement in demand growth and ramp­up of capacity additions, management expects volume growth at 12 per cent for FY18. It said near-term performance may be weak due to seasonal negative pricing news. It cut the company's FY18 Ebitda estimate by 6 per cent. The stock rose 3.86 per cent to Rs 17,597.85 on Monday.

Shree Cements, incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 61306.03 crore) operating in Cement sector.

Shree Cements key Products/Revenue Segments include Cement which contributed Rs 5614.15 crore to Sales Value (89.91 per cent of Total Sales), Power which contributed Rs 595.41 crore to Sales Value (9.53 per cent of Total Sales), Clinker which contributed Rs 34.49 crore to Sales Value (0.55 per cent of Total Sales), Other Operating Revenue which contributed Rs .02 crore to Sales Value (0.00 per cent of Total Sales)for the year ending 31-Mar-2016.