“₹31,000 for a Cement Stock? Shree Cement Be Like: ‘Ambuja Who?’”

“₹31,000 for a Cement Stock? Shree Cement Be Like: ‘Ambuja Who?’”

🧠 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

MetricFY21FY22FY23FY24FY25
Sales (₹ Cr)13,56015,01017,85220,52119,283
EBITDA (₹ Cr)4,0913,7102,9604,5183,934
Net Profit (₹ Cr)2,2902,3371,2692,3961,124
EPS (₹)633.5646.3352.2664.0311.2
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?

FYBorrowings (₹ Cr)Reserves (₹ Cr)Total Liabilities (₹ Cr)
20212,23015,36121,513
20232,72518,60026,334
20251,04621,50228,492

👍 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

FYCFO (₹ Cr)CFI (₹ Cr)CFF (₹ Cr)Net Cash Flow
20232,569-2,405-277-113
20243,347-1,418-1,710+220
20254,920-3,728-1,296-104

✅ Strong operating cash
🚫 Capex-heavy (₹3,700 Cr+ in FY25)
⛔ Financing cash out = high dividend + debt repayment


8. 📐 Ratios – Sexy or Stressy?

MetricFY23FY24FY25
ROCE %9%15%7%
ROE %7%12%5%
OPM %17%22%20%
CCC (Days)423567223
Inventory Days703827444

🏗️ 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?

CompanyP/EROE %OPM %MCap (₹ Cr)
UltraTech609.316.5₹3.66 L Cr
Ambuja358.717₹1.45 L Cr
ACC1613.214₹37,000 Cr
Dalmia584.117.2₹40,000 Cr
Shree Cement1015.320.4₹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

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