Shree Cement Limited

Basic Materials — Building Materials · NSE

₹22,460.00+₹145.00 (+0.65%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by high debt relative to equity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Shree Cement Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shree Cement Limited engages in the manufacture and sale of cement and clinker in India and internationally. The company provides ordinary Portland, Portland pozzolana, Portland slag, and composite cements.

IndustryBuilding Materials

SectorBasic Materials

Employees7,157

Annual revenue₹20,588 Cr

How does it make money?

Turns over ₹20,588 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation. Each of its 7,157 employees supports ₹2.88 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.88 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, DALMIA BHARAT LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE7.4%

What is the outlook?

22 analysts covering the stock expect revenue to grow about 9.0% and earnings to grow about 25.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.0%

Est. earnings growth+25.1%

Analysts22

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +18% while net margin moved +16% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+18%

Margin effect+16%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 7.5% is weak

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

44/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

49.7x

3Y Median

72.4x

40 monthly readings · mean 65.1x · range 37.8x–94.1x

Sector Median

34.1x

median of 4 sector peers

🟢Current valuation is approximately 31% below its 3y median of 72.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 46% above the peer median of 34.1x.

vs. its own history

Cheap

72.4x median over 40 months · -31%

vs. sector peers

Expensive

34.1x median of 4 peers · +46%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

16.8x

PEG

4.47

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 18.8% to 23.9% over 3 years.
Debt is being paid down
Total debt is down 31% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 8.01x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Receivables growing faster than salesFinancial
Receivables up 51% against revenue up 18% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 18.8% to 23.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 31% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 31% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 8.01x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 51% against revenue up 18%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 46% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 5.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 22%✓ 23.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.7% CAGR
Latest reported year was 18.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹1,885 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹81,037 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

49.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.48x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹451.78

Profitable

Profitable on a per-share basis

ROE

7.5%

Weak

Weak capital efficiency

ROCE

10.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

8.01x

High

High leverage

Revenue Growth (YoY)

18.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-17.7%

Falling

Profits are shrinking

Dividend Yield

0.62%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹1,885 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

33.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.4%

Average

Average margins

Net Margin

7.4%

Average

Average bottom-line conversion

Current Ratio

2.16

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

22187.0 / 23316.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹17,441 Cr	₹20,092 Cr	₹18,976 Cr	₹20,588 Cr	+5.7%
EBITDA	₹3,272 Cr	₹4,763 Cr	₹4,098 Cr	₹4,921 Cr	+14.6%
EBITDA Margin	18.8%	23.7%	21.6%	23.9%	—
PAT (Net Profit)	₹1,271 Cr	₹2,396 Cr	₹1,123 Cr	₹1,744 Cr	+11.1%
EPS	₹352.18	₹663.98	₹311.18	₹483.24	+11.1%
ROE	6.8%	11.6%	5.2%	7.5%	—
ROCE	9.0%	14.7%	6.7%	10.2%	—
Total Debt	₹2,725 Cr	₹1,656 Cr	₹1,046 Cr	₹1,868 Cr	-11.8%
Free Cash Flow	-₹746 Cr	₹147 Cr	₹816 Cr	₹1,885 Cr	—

🟢 Revenue has grown at 5.7% a year over 3 years.

🟢 EBITDA has grown at 14.6% a year over 3 years.

🟢 EBITDA Margin has risen from 18.8% to 23.9% over 3 years (+5.1 pts).

🟢 PAT (Net Profit) has grown at 11.1% a year over 3 years.

🟢 EPS has grown at 11.1% a year over 3 years.

🟡 ROE has held roughly flat at 7.5% over 3 years.

🟢 ROCE has risen from 9.0% to 10.2% over 3 years (+1.3 pts).

🟢 Total Debt has shrunk at 11.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹746 Cr to ₹1,885 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹31,476 Cr

Total Liabilities

₹8,162 Cr

Cash & Equivalents

₹110 Cr

Operating Cash Flow

₹3,794 Cr

Capex

-₹1,909 Cr

Shareholding (proxy)

Institutional Holding

20.1%

Insider Holding

72.8%

Corporate Actions

Next Earnings

23 Oct 2026

Dividend Rate

₹140

Ex-Dividend Date

17 Jul 2026

Analyst Consensus

Recommendations

22 Buy · 8 Hold · 7 Sell

Target Price (Mean)

₹27,623.14

+23.0% vs CMP

Target Range

₹20,100 – ₹31,600

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
DALMIA BHARAT LIMITED	33.4x	5.2%

Recent News

1 mixed1 negative4 general

SHREECEM Outlook for the Week

Equitypandit, 09 Oct

Shree Cement Share Price: price action, fundamentals, peers

Univest, 29 Sept

Shree Cement (NSEI:SHREECEM) Stock Price

Simply Wall Street, 10 Oct

Cement shares in focus: Ramco, Dalmia Bharat, Shree, JK, ACC gain up to 5%

Business Standard, 26 Aug

SHREECEM Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Shree Cement Q1 Profit Falls 17% to ₹531 Cr

HDFC Sky, 31 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Valuation · Risk

WeakProfitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑