Shree Cement reports better than estimated Q4 nos; what should investors do?

Shree Cement share price: Shares of Shree Cement declined on Wednesday (May 15). The stock moved after numerous brokerages revised their stance on the stock after the company reported its Q4FY24 numbers, on Tuesday after market hours. 

At around 10:55 a.m., shares of Shree Cement were down 0.31 per cent or 81.8 points at 25937.7 apiece. The market capitalisation of the company at around the same time stood at Rs 93,412.33 crore. 

Brokerage view on Shree Cement 

Global brokerage Jefferies maintained a 'hold' rating on the stock and gave a target of Rs 29,500 apiece.  Meanwhile, Macquarie continued a 'neutral' rating and gave a target of Rs 27,034 apiece.
 
Similarly, Morgan Stanley iterated 'overweight' rating and gave a target of Rs 30,000  apiece.
 
Additionally, Nomura maintained 'buy' and gave a target of Rs 33,400 apiece. 

Anil Singhvi's view on Shree Cement 

Zee Business Managing Editor Anil Singhvi recommended buying futures of Shree Cement for targets of Rs 26,885, Rs 27050, and Rs 27,225 apiece while keeping a stop loss at Rs 25,995 apiece. 

How did Shree Cement fare in Q4?

Shree Cement on Tuesday reported a 21.2 per cent jump in standalone net profit to Rs 662 crore in the March quarter. Zee Business Research had estimated the net profit at Rs 570 crore for Q4.

The company had posted a net profit of Rs 546 crore in the year-ago period.

The revenue during the quarter under review stood at Rs 5,101 crore as against Rs 4,785 crore in the corresponding period a year ago, it added. It was expected at Rs 4,980 crore by Zee Business analysts.

The earnings before interest, tax, depreciation, and amortisation (EBITDA) for the fourth quarter stood at Rs 1,327 crore against 892 crore a year ago. The margin of the company stood at 26 per cent against 18.6 per cent. 

As per the company's release, on April 2, 2024, the company commissioned its Integrated Cement Plant in Andhra Pradesh with a cement capacity of three million tonnes per annum. 

Upon completion, the total cement production capacity of the company in India will reach 74.80 million tonnes.

Shree Cement dividend 

The Board recommended a final dividend of Rs 55 per share (550 per cent) for the year 2023-24 subject to approval of members in the next Annual General Meeting. 

Shree Cement share price: Past performance 

In a year, shares of Shree Cement have given a return of 6 per cent against Nifty50's rise of over 20 per cent.

Catch all the updates of the May 15 session on Dalal Street here. For all other news related to business, politics, tech and auto, visit Zeebiz.com. 

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