IIFL Securities maintains ‘Sell’ on Shree Cements, target price Rs 13,800

IIFL Securities maintained its ‘Sell’ rating on Shree Cements in the long term with a target price of Rs 13,800. Shares of Shree Cements closed at Rs 23,100, up 0.36% on Thursday while the BSE Sensex closed 271.02 points up (+0.66%) at 41,386.40.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 3004.45 Crore, down -9.03% from last quarter sales of Rs 3302.79 crore and up 5.22% from last year same quarter sales of Rs 2855.39 crore. The company has reported net profit after tax of Rs 313.30 crore in the latest quarter.


The company’s top management includes Dr.Y K Alagh, Mr.B G Bangur, Mr.H M Bangur, Mr.Nitin Desai, Mr.O P Setia, Mr.P N Chhangani, Mr.Prashant Bangur, Mr.R L Gaggar, Mr.Sanjiv Krishnaji Shelgikar, Mr.Shreekant Somany, Ms.Uma Ghurka. Company has Gupta & Dua as its auditors. As on 31-12-2019, the company has a total of 36,080,748 shares outstanding.

Investment Rationale

The brokerage said the strong improvement in profitability of Shree Cements in the current year, it was achieved with discipline bouncing back in the northern region, as supply addition was low. However, this discipline is expected to decline in FY21in the North, given increasing supplies. Also, cement prices are expected to decline in FY21in the key northern region.