Shree Cement Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹87,895 crore, PE ratio of 41.8, debt-to-equity ratio of 0.08, and return on equity of 12.2%. These figures reflect the company’s financial health and current market valuation.
Content:
- Shree Cement Ltd Overview
- Shree Cement Financial Results
- Shree Cement Financial Analysis
- Shree Cement Company Metrics
- Shree Cement Stock Performance
- Shree Cement Peer Comparison
- Shree Cement Shareholding Pattern
- Shree Cement History
- How To Invest In Shree Cement Ltd Share?
- Shree Cement Limited Fundamental Analysis – FAQs
Shree Cement Ltd Overview
Shree Cement’s fundamental analysis highlights its robust financial health with strong revenue growth, high operating margins, and a solid return on equity. The company has a significant market capitalization, low debt levels, and consistent profitability, reflecting its stable market position.
The company has a market capitalization of ₹87,895 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 20.8% below its 52-week high and 3.96% above its 52-week low.
Shree Cement Financial Results
Shree Cement’s financial results for FY 24 show a notable increase in sales and operating profit compared to previous years. The company’s revenue grew significantly while maintaining strong profitability and efficient cost management.
- Revenue Trend: Shree Cement’s revenue rose to ₹20,521 crore in FY 24 from ₹15,010 crore in FY 22, reflecting steady growth.
- Equity and Liabilities: The company’s equity and liabilities structure reflects solid financial health, with a Net Profit of ₹2,396 crores in FY24 and consistent dividend payouts ranging from 13.93% to 28.39%.
- Profitability: Operating profit increased to ₹4,517 crore in FY 24, up from ₹3,708 crore in FY 22, showcasing improved profitability.
- Earnings Per Share (EPS): EPS surged to ₹663.98 in FY 24, up from ₹646.31 in FY 22, reflecting higher shareholder returns and effective earnings growth.
- Return on Net Worth (RoNW): The Return on Net Worth (RoNW) for the company demonstrates effective utilization of equity, with EPS rising from ₹352.18 in FY23 to ₹663.98 in FY24, indicating strong profitability growth.
- Financial Position: The company maintains a solid financial position with healthy profitability, low debt, and strong cash flow, ensuring stability and growth potential.
Shree Cement Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 20,521 | 17,852 | 15,010 |
| Expenses | 16,004 | 14,893 | 11,302 |
| Operating Profit | 4,517 | 2,960 | 3,708 |
| OPM % | 22 | 17 | 25 |
| Other Income | 598.12 | 459.08 | 545.89 |
| EBITDA | 5,115 | 3,419 | 4,254 |
| INTEREST | 258.34 | 262.87 | 216.12 |
| Depreciation | 1,897 | 1,661 | 1,146 |
| Profit Before Tax | 2,959 | 1,495 | 2,892 |
| Tax % | 19.03 | 15.11 | 19.2 |
| Net Profit | 2,396 | 1,269 | 2,337 |
| EPS | 663.98 | 352.18 | 646.31 |
| Dividend Payout % | 15.81 | 28.39 | 13.93 |
*All values in ₹ Crores
Shree Cement Company Metrics
Shree Cement’s market overview shows a robust market capitalization of ₹87,895 crore, with a current stock price of ₹24,361. The company’s financial metrics highlight strong profitability, low debt, and effective asset management, indicating overall financial health and stability.
- Market Cap: Shree Cement’s market capitalization stands at ₹87,895 crore, reflecting its significant position and value in the cement industry.
- Book Value: The company’s book value is ₹5,738, indicating the net asset value per share, which supports its financial stability and growth prospects.
- Face Value: Shree Cement’s face value is ₹10.0 per share, which is the nominal value assigned to each share and helps assess its fundamental worth.
- Turnover: With an asset turnover ratio of 0.76, Shree Cement effectively utilizes its assets to generate revenue, highlighting operational efficiency.
- PE Ratio: The stock’s PE ratio is 41.8, indicating investor expectations of future growth and profitability relative to current earnings.
- Debt: Shree Cement’s debt stands at ₹1,656 crore with a low debt-to-equity ratio of 0.08, showcasing prudent debt management and financial stability.
- ROE: The company’s return on equity (ROE) is 12.2%, demonstrating the effective use of shareholders’ equity to generate profit.
- EBITDA Margin: Shree Cement’s EBITDA margin is 21.9%, reflecting strong operational efficiency and profitability relative to its revenue.
- Dividend Yield: The dividend yield is 0.43%, providing shareholders with modest returns on their investment through dividend payments.
Shree Cement Stock Performance
The table shows Shree Cement’s investment returns over different periods. Over 5 years, the return is 4%, indicating modest growth. Over 3 years, the return is -3%, reflecting a slight decline. Over the past year, the return is 3%, demonstrating a positive but moderate short-term gain.
| Period | Return on Investment (%) |
| 5 Years | 4% |
| 3 Years | -3% |
| 1 Year | 3% |
Example:
If an investor had invested ₹1,00,000 in Shree Cement five years ago, the return would be 4%, yielding ₹4,000 in profit, making the total value ₹1,04,000.
For a three-year investment of ₹1,00,000, the -3% return would result in a loss of ₹3,000, leaving the investment valued at ₹97,000.
In the past year, a ₹1,00,000 investment would have earned a 3% return, equating to ₹3,000 in profit, bringing the total to ₹1,03,000.
Shree Cement Peer Comparison
The competitor analysis of Shree Cement reveals it has a market cap of ₹87,875.38 crore. Compared to its peers, Shree Cement’s one-year return of 2.61% lags behind companies like UltraTech Cement and Ambuja Cements, which show higher returns and varying PEG ratios.
| Sl No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | UltraTech Cem. | 11002.6 | 317725.27 | 1.89 | 13.32 | 36.61 |
| 2 | Ambuja Cements | 623.2 | 153624.87 | 5.71 | 1.27 | 41.33 |
| 3 | Shree Cement | 24338.95 | 87875.38 | 2.63 | -5.24 | 2.61 |
| 4 | ACC | 2281.95 | 42862.34 | 2.94 | -8.21 | 19.45 |
| 5 | J K Cements | 4107.2 | 31831.75 | 1.51 | 6.73 | 30.73 |
| 6 | Nuvoco Vistas | 333.5 | 11912.93 | 1.31 | 5.04 | -1.62 |
| 7 | Birla Corpn. | 1257.8 | 9687.89 | 2.31 | -12.17 | 16.4 |
Shree Cement Shareholding Pattern
Shareholding Pattern of Shree Cement reveals stability in ownership with promoters holding 62.55% consistently. FIIs have a slight decrease to 11.85%, while DIIs increased to 13.02%. Retail and other investors’ stakes slightly fluctuated around 12.6%, reflecting stable investor confidence.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 62.55 | 62.55 | 62.55 | 62.55 |
| FII | 11.85 | 12.47 | 12.31 | 12.22 |
| DII | 13.02 | 12.33 | 12.55 | 12.55 |
| Retail & others | 12.58 | 12.63 | 12.59 | 12.68 |
*All values in %
Shree Cement History
Shree Cement was established in 1979 in Jaipur by the Bangur family, with significant contributions from Shree Digvijay Cement Co., Graphite India, and Fort Gloster Industries. It began commercial production in 1985, adopting modern technology to enhance efficiency.
In the 1990s, Shree Cement expanded its capacity and modernized its plants. The company also undertook significant financial and operational initiatives, including converting loans into equity and issuing debentures for expansion, leading to increased production capacity.
By the 2000s, Shree Cement emerged as a leading cement manufacturer in Northern India. It expanded its capacity further, received numerous awards for energy efficiency and corporate governance, and commissioned new units, enhancing its production capabilities.
How To Invest In Shree Cement Ltd Share?
Investing in Shree Cement Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Shree Cement Ltd shares and place your buy order.
Shree Cement Limited Fundamental Analysis – FAQs
Shree Cement Ltd’s fundamental analysis underscores its strong financial health, featuring robust revenue growth, high operating margins, and solid market capitalization. Key metrics include a PE ratio of 41.8, a debt-to-equity ratio of 0.08, and a 12.2% return on equity.
The market capitalization of Shree Cement is ₹87,895 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Shree Cement Limited is a major Indian cement manufacturer known for its extensive production capacity and industry presence. Based in Rajasthan, it produces various cement products and has a significant footprint in the Indian and international markets.
Shree Cement is primarily owned by the Bangur family, particularly under the leadership of the Bangur Group, which has significant shareholding and influence in the company’s operations and strategic decisions.
The main shareholders of Shree Cement include the Bangur family, through their investment firms, and institutional investors such as LIC, ICICI Bank, and various mutual funds. The Bangur family holds a significant portion of the company’s equity.
Shree Cement operates in the cement industry, focusing on manufacturing and distributing cement and related products. The company is known for its extensive cement production capacity and is a major player in the Indian construction and infrastructure sector.
To invest in Shree Cement Ltd shares, open a brokerage account with a registered broker, then search for Shree Cement on the trading platform. Place a buy order specifying the number of shares and execute the trade.
Determining if Shree Cement Ltd is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
