🧠 At a Glance
Shree Cement has always been India’s posh cement stock—premium price, disciplined ops, and pretentious P/E. But in the last five years, profit growth fell like a wall hit by a bulldozer, even as capacity expanded. Margins are back, debt is down, but valuation remains… Himalayan.
1. 🎯 Introduction with Hook
Welcome to the LVMH of Limestone.
While peers like ACC and Dalmia sell sacks of cement, Shree Cement sells status. With a ₹31,000+ stock price, it’s the kind of stock you flex in your demat, not in a portfolio review.
But beneath the ultra-premium valuation, lies a company that:
- Is India’s 3rd largest cement producer (46.4 MTPA)
- Has sluggish revenue and profit growth
- Yet still trades at a P/E of 100+
So, kya ye ultra-expensive stock solid hai ya sirf packaging?
2. 🏭 WTF Do They Even Do?
Core business? Manufacturing and selling cement—plain, pozzolana, slag, and now premium branded cement like:
- 🧱 Bangur Powermax
- 🔩 Bangur Magna (premium)
- 🌱 AAC blocks with GreenPro certification
Also recently added:
- 🪨 Joga-IV limestone mine win (223.3 MT)
- 🌍 Ambition to go pan-India like UltraTech
The brand strategy? Take cement, give it a fancier name, charge more, and claim margin expansion.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
---|---|---|---|---|---|
Sales (₹ Cr) | 13,560 | 15,010 | 17,852 | 20,521 | 19,283 |
EBITDA (₹ Cr) | 4,091 | 3,710 | 2,960 | 4,518 | 3,934 |
Net Profit (₹ Cr) | 2,290 | 2,337 | 1,269 | 2,396 | 1,124 |
EPS (₹) | 633.5 | 646.3 | 352.2 | 664.0 | 311.2 |
ROE (%) | 14% | 13% | 7% | 12% | 5% |
ROCE (%) | 19% | 17% | 9% | 15% | 7% |
🔥 Revenue up only ~7% CAGR
💥 PAT has de-grown over 5 years
😐 ROE almost halved
4. 📉 Valuation – Is It Cheap, Meh, or Crack?
- P/E: 100.6 (yes, triple digits)
- P/B: 5.2
- EV/EBITDA: ~20x
- Dividend Yield: 0.34% (just vibes)
- ROE: 5.32% → yet market treats it like a tech stock
📌 Fair Value Calculation (FY26E)
Assume EPS rebounds to ₹500 (optimistic)
- At 25x = ₹12,500
- At 30x = ₹15,000
➡️ Edu FV Range = ₹12,500 to ₹15,000
Currently at ₹31,300 → Either the cement is magical or the market is memetical.
5. 🍿 What’s Cooking – News, Triggers, Drama
- 🪨 Won 223.3 MT limestone mining block (Joga-IV, Rajasthan)
- 🏦 Bank guarantee worth ₹3.6 Cr encashed due to missed milestone
- 🧱 Premium cement segment rising: 15% of mix now (up from 7%)
- 🧯 Focus on expanding east and south India presence
- 📈 Upcoming Q1 results: Aug 4, 2025
No scandals. No drama. Just slow, steady… and expensive.
6. 💰 Balance Sheet – How Much Debt, How Many Dreams?
FY | Borrowings (₹ Cr) | Reserves (₹ Cr) | Total Liabilities (₹ Cr) |
---|---|---|---|
2021 | 2,230 | 15,361 | 21,513 |
2023 | 2,725 | 18,600 | 26,334 |
2025 | 1,046 | 21,502 | 28,492 |
👍 Debt nearly eliminated
💪 Net cash positive
📉 Capex funded via internal accruals
Truly built like a fortress. But is it growing?
7. 💵 Cash Flow – Sab Number Game Hai
FY | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash Flow |
---|---|---|---|---|
2023 | 2,569 | -2,405 | -277 | -113 |
2024 | 3,347 | -1,418 | -1,710 | +220 |
2025 | 4,920 | -3,728 | -1,296 | -104 |
✅ Strong operating cash
🚫 Capex-heavy (₹3,700 Cr+ in FY25)
⛔ Financing cash out = high dividend + debt repayment
8. 📐 Ratios – Sexy or Stressy?
Metric | FY23 | FY24 | FY25 |
---|---|---|---|
ROCE % | 9% | 15% | 7% |
ROE % | 7% | 12% | 5% |
OPM % | 17% | 22% | 20% |
CCC (Days) | 423 | 567 | 223 |
Inventory Days | 703 | 827 | 444 |
🏗️ ROE/ROCE trending down
📦 Inventory days are nuts (700+!)
🧾 Working Capital Days now 117 → cash stuck in bags of cement?
9. 📊 P&L Breakdown – Show Me the Money
FY25 Consolidated:
- Revenue: ₹19,283 Cr
- EBITDA: ₹3,934 Cr (20.4%)
- PBT: ₹1,312 Cr
- Net Profit: ₹1,124 Cr
- EPS: ₹311
Not bad. But not ₹31,000-level exciting either.
10. 🤼 Peer Comparison – Who Else in the Game?
Company | P/E | ROE % | OPM % | MCap (₹ Cr) |
---|---|---|---|---|
UltraTech | 60 | 9.3 | 16.5 | ₹3.66 L Cr |
Ambuja | 35 | 8.7 | 17 | ₹1.45 L Cr |
ACC | 16 | 13.2 | 14 | ₹37,000 Cr |
Dalmia | 58 | 4.1 | 17.2 | ₹40,000 Cr |
Shree Cement | 101 | 5.3 | 20.4 | ₹1.13 L Cr |
😅 Literally the most expensive on every metric.
11. 📌 Miscellaneous – Shareholding, Promoters, etc.
- Promoter Holding: Steady at 62.56%
- FIIs: Falling from 12.5% → 9.7%
- DIIs: Increasing from 11% → 15%
- Retail Holding: Only ~12.4%
- Shareholders: Dropping from 62,000 → 24,779 (👀 retail exit?)
📉 FII out, DII in. Retail… confused.
12. 👨⚖️ EduInvesting Verdict™
Shree Cement is the cement stock that drinks kombucha and charges ₹500 for a bag just because it has a QR code.
📈 Fundamentals? Strong.
📉 Growth? Meh.
💸 Valuation? LOL.
It’s like buying Maggi for ₹200… sure, it’s still Maggi, but you’re paying for the bowl.
EduInvesting FV Range (FY26E): ₹12,500 – ₹15,000
CMP: ₹31,300 → You decide if you’re buying cement or Chanel.
✍️ Written by Prashant | 📅 09 July 2025
Tags: Shree Cement, Cement Stocks, Bangur Magna, Limestone Mining, UltraTech vs Shree, Cement Sector, EduInvesting