In-line EBITDA; strategic hurdles loom in the near term

Company
12 Nov 2024
5 Min read 
  • Shree Cement's 2QFY25 results update includes financial snapshot and ratios.
  •  EBITDA declined ~32% YoY to INR5.9m, and EBITDA/t declined 27% YoY to INR780.
  •  Management is focusing on value over volume to drive better realizations.
  •  Ongoing capacity expansions of 15.4mtpa are likely to be commissioned by 1QFY26.
  •  EBITDA estimates are cut for FY25 and FY26/27 due to likely accelerated depreciation.
  •  The stock is currently trading at 19x/17x FY26E/FY27E EV/EBITDA.
  •  Cement demand and pricing were affected by slower government capex and intense monsoon.
  •  The company's volume should grow in line with the industry in 2HFY25.
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