Shree Cement is an Indian-based cement producer. Presently, it is one of the biggest cement manufacturers in Northern India. Headquartered in Kolkata, Shree Cement aims at providing the best cement quality to indigenous customers.
The market capitalisation of Shree Cement stood at Rs.58,543 crore as of Early March 2018. Market capitalisation reflects the overall market price of an enterprise.
Company’s wealth and recent performanceShree Cements Q1 FY19 Results
- Shree Cements reported a decline in its net profit by 36.5% year-on-year to stand at Rs.279.5 crore attributed by higher interest and depreciation cost.
- However, its revenue grew by 19.1% during the said quarter to stand at Rs.3,069.90 crore which was in line with the estimates.
- The company said that due to a sharp incline in the cost structure, the EBITDA was down by 19.4% year-on-year to stand at Rs.575.2 crore, while the EBITDA margin decreased by 894bps year-on-year to 18.7%.
- As for its production status, the company reported that its cement volume was up by 18.7% which stood at 6.99 million tonnes.
- The cement segment for the said quarter was strong with the revenue under the segment growing by 15.6% year-on-year to stand at Rs.2,869.5 crore.
- Its power segment grew by 109.4% to stand at Rs.200.5 crore with an EBIT of Rs.210.8 crore, inclining by 22.3% year-on-year.
- The cement manufacturing company reported a rise in its net revenue from operations which stood at Rs.9,833.10 crore as against Rs.8,594.30 crore during the previous fiscal.
- Its EBITDA declined for the said financial year to stand at Rs.2,861.83 crore as compared to Rs.2,874.94 crore reported last fiscal.
- However, its net profit slightly inclined to stand at Rs.1,384.18 crore compared to Rs.1,339.11 crore posted last financial year.
- At the end of FY 2017-18, the company’s net worth was at Rs.8,897 crore.
- Shree Cements posted a jump in its standalone net profit as it grew by 31.1% year-on-year to stand at Rs.399.20 crore beating estimates.
- The company’s revenue inclined by 15.3% year-on-year to stand at Rs.2,811.1 crore for the said quarter.
- While its EBITDA also inclined by 11.5% year-on-year to stand at Rs.629.4 crore; however, its EBITDA margin declined by 75bps year-on-year to 22.4% due to higher freight and power cost.
- The company’s Profit After Tax (PAT) increased by 31.1% year-on-year to stand at Rs.399.2 crore led by strong growth in sales and lower depreciation cost.
- The sales of cement inclined by 16.7% year-on-year to stand at Rs.2,678.9 crore and the EBIT also inclined from Rs.41.8 crore in the corresponding quarter of last fiscal to Rs.240.1 crore in the said quarter.
- The cement volume grew by 9% year-on-year and 5% year-on-year incline in realisation growth.
- Shree Cements also announced that it acquired 100% equity stakes in Raipur Handling and Infrastructure Private Limited (RHIPL) for an aggregate consideration of Rs.59 crore.
- For the third quarter ended on 31 December 2017, the net sales of Shree Cement soared to Rs.2,296.23 crore from Rs.2,136.83 crore. The operating revenues of the company also increased to Rs.569.62 crore from Rs.560.47 crore.
- The revenue from the power of the cement company was up to Rs.349.58 crore as against to Rs.246.47 crore. The revenues accumulated to Rs.2,193.64 crore as against Rs.2,085.25 crore.
- During the same quarter, it was also reported by the company that the overall revenue accelerated to Rs.2,383.53 crore as against Rs.2,226.79 crore previous year.
- An interim dividend of Rs.20 was announced by Shree Cement during the same quarter. Besides, other key financial aspects of the cement company produced a marginal increase.
Stock trends Shree Cements 2016
- The stock price of Shree Cement stood at Rs.10,549.75 in January and declined to Rs.10,003.70 in February. It gained the price in the next month to Rs.12,420.50. On the stock exchange, the equities of Shree Cement retailed at the highest price of Rs.13,165.10 and at the lowest price of Rs.9,399.
- In April, May and June, the equity value of the company was up by 2.20%, 3.44% and 10.79% respectively owing to strong fundamentals. The Shree Cement stock also gained demand amid investors. Due to which, the stock prices were comparatively high.
- The equities of Shree Cement extended to grow even in the next two months. In July, they produced a growth rate of 10.75% whereas in August the growth rate was 6.61%. Until July, the highest rate was logged at Rs.16,499. The equity price of the cement company was up 6.6% to Rs.17,174.80 in August.
- Owing to poor demand among stock investors, on the BSE and NSE stock exchanges, the stock prices of Shree Cement started declining. They were down by 0.77%, 0.90%, 8.37% and 5.38% in September, October, November and December respectively. Towards the end of 2016, the Shree Cement stock retailed at Rs.14,641.58.
Stock trends Shree Cements 2017
- The year started with positive notes with regard to stock prices. In the first month, they were up 4.91% to Rs.15,359.78. The upward trend continued in the next two months. By the end of March, the stock prices reached to Rs.17,083.20. During this tenure, stock returns were also good for investors.
- In April, the share price of Shree Cement increased by 12.32%. The stocks lost demand since there were no noticeable announcements in May and June and as a result, the equity rates were down 6.16% to Rs.18,004.85 in May and 5.84% to Rs.16,953.30 in June. Over the last six months, the lowest price stood at Rs.13,843.24.
- By July, the share price of Shree Cement climbed to Rs.18,601.70 with a growth rate of 9.72%. It further dropped to Rs.17,591.05 in the subsequent month. The stocks marginally gained demand in September. Therefore, the stock prices hiked 5.62% to Rs.18,580 by the month’s end. Returns were also better for stock traders.
- Towards the end of the year, the share value of Shree Cement was above Rs.18,500. In October, it soared by 1.89%, but in November, it was down by 9.15%. During the entire year, the highest price of Shree Cement stock was booked at Rs.20,538 in May. In January 2018 and February 2018, the equity prices of the company witnessed a downward trend.
- On the 1st of January 2018, the stock lost about 145 points to end the day at Rs.17,929.05 only to increase by nearly 2,000 points to end at Rs.19,536.10 on the 11th. However, by the end of the month, the scrip dropped more than 2,000 points to close at Rs.17,206.30.
- The scrip gained about 245 points on the 1st of February to stand at Rs.17,453.05 before it lost about 1,000 points to stand at Rs.16,517.80 on the 6th and remained stable for the remainder of the month to close at Rs.16,623.45.
- When the market opened for trading on the 1st of March, the stock price stood at Rs.16,595.35 and remained steady over the course of the month to end at Rs.16,196.45, down by about 300 points compared to the opening price of the month.
- On the 2nd of April, the stock gained more than 200 points to end the day at Rs.16,410.25 and by the 25th, the scrip gained significantly to stand at Rs.17,410.80 only to lose about 400 points to end the month at Rs.16,943.80.
- The scrip lost further 300 points on the 2nd of May to be valued at Rs.16,603.70 but gained about 300 points by the end of the month to close at Rs.16,880.60.
- The stock opened at Rs.16,757.30 on the 2nd of June before losing more than 200 points to end the day at Rs.16,656.40. On the 21st of June, the scrip touched an all-time low of Rs.15,306.30 due to a lower than expected Q1 FY19 results. The stock ended the month at Rs.15,554.20.
- The scrip gained about 300 points on the 2nd of July to stand at Rs.15,885.55 and inclined significantly to stand at Rs.17,129.55 on the 13th and fluctuated over the course of the month to close at Rs.17,018.10.
- In August, the stock price of the company began at Rs.17,260.05 and remained stable over the course of the month before rising considerably by the end of the month to close at Rs.18,925.80.
Shree Cement BSE and NSE listings
- Shree Cement is a BSE and NSE registered cement producer. On the National Stock Exchange, it is traded as NSE:SHREECEM. On the Bombay Stock Exchange, the company is listed as 500387.
Should I buy Shree Cement Stocks?
- If you are a short-term stock trader, the technical analysis will provide the useful tips to make investment decisions. If you are a long-term investor, the comparative analysis of financial statements is recommended to you.
- The company is fundamentally sound since the key financial aspects have been steady over the last 4-5 years. Moreover, debt obligations have been fair. The gross sales consistently increased. If you look at the stock trends in 2016 and 2017, the stock performance was satisfactory.
- Considering the fundamentals, investing in Shree Cement stocks for the long-term may be a better choice. You could anticipate a better return as well. At the beginning of 2016, the stock value of the company was just above Rs.11,000. Within a span of two years, the stock price reached Rs.20,538.
- Shree Cement has been competing well in the industry. It owns a reasonable amount of market share. Compared to peers, the financial performance of Shree Cement has been satisfactory. It may not face any major threats from competitors such as ACC, Ambuja Cement, etc. These may be a few positive elements to consider buying stocks.
- Financial analysts will use solvency ratios such as current ratio, cash ratio and fixed assets to current assets ratio to gauge the liquidity of an enterprise. Shree Cement is a liquid company considering these ratios. This is another positive sign for long-term stock buyers.
- Be sure to use the technical analysis if you are a short-term stock trader of Shree Cement. The technical analysis is used to comprehend the trends in stock prices. You can make investment decisions based on the analysis. As of 15 March 2018, the Classic R1 stood at Rs.16,873 whereas the Classic R2 stood at Rs.16.991.12.
- The concept of moving average is used widely by stock traders. As of 15 March 2018, the stock of Shree Cement may be purchased at Rs.16,868.73 according to a 5-day moving average. The stock may be retailed at Rs.16,945.02 according to a 10-day moving average.
Shree Cement is a well-known cement producer. The headquarter is in Kolkata, the capital city of West Bengal. It is also a producer and seller of power under the name Shree Mega Power and Shree Power. The company was ranked 4th in 2017 Responsible Business Rankings designed by IIM Udaipur. The plants of Shree Cement are situated in Panipat, Haryana; Aurangabad, Bihar; Laksar Uttarakhand; Suratgarh, Rajasthan; Raipur, Chhattisgarh etc. Shree Cement is a sustainable company powered by unique technical and non-technical expertise. As of now, the manufacturing units of the company have been spread across East and North India.
The company has a unique combination of technical and non-technical teams to provide the best quality products. It makes consistent investments in research and development to bring innovative ideas. Being a responsible business entity, Shree Cement has won many awards, including National Award for Excellence, Green World Ambassador Award, National Award for Supply Chain and Logistic Excellence, CSR Excellence Award, Golden Peacock HR Excellence Award, etc. The cement company remains accountable to its stakeholders, fosters socially liable behavior and also promotes the integrity of conduct. The HR wing of the organisation continually develops employee-friendly programs to enrich productivity.
|Shri Prakash Narayan Chhangani||President (Works)|
|Shri Diwakar Payal||President (Marketing)|
|Shri Sanjay Mehta||President (Commercial) & Chief Happiness Officer|
|Shri Arvind Khicha||Jt. President (Commercial)|
|Shri Ram Narayan Dani||Vice President (Costing & MIS)|
|Shri Nemi Chand Jain||Vice President (Finance & Internal Audit)|
|Shri Surendra Kumar Soni||Vice President (Sales Accounts)|
|Shri Kamlesh Kumar Jain||Vice President (Accounts & Contracts)|
|Shri Kirit Chhaganlal Gandhi||Jt. President (Material Management)|
|Shri Kuldeep Verma||Jt. President (Marketing)|
|Shri Shrinath Savoor||Jt. President (Strategy)|
|Shri R K Agarwal||Sr. Vice President (Projects)|
|Shri Sharad Rajvanshi||Vice President (Marketing)|
|Shri Anil Kumar Gupta||Vice President (Projects)|
|Shri Shyam Sunder Khandelwal||Company Secretary and Chief Risk & Compliance Officer|
History of Shree Cement
- Shree Cement was started in 1979 and was promoted by P D Bangur and B G Bangur.
- In 1994-1995, the new activities in the field of hire purchase and leasing were undertaken.
- In 1997, the second plant was started by the company with the capability of 1.24 million tonnes.
- In 2003-2004, a 36 MV captive power plant was installed.
- In 2006-2007, at Begur, the production capability was extended to 3.00 MTPA.
- In 2008-2009, Shree Cement completed its 1 MTPA Clinkerisation Unit in Begur.
Beawar - 305 901, District - Ajmer, Rajasthan
Toll-free: 1800 180 6003/6004Corporate Office
21 Strand Road,
Kolkata – 700 001, West Bengal
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