During the year, Shree Cement commissioned an integrated Cement unit at Guntur, Andhra Pradesh, with a 1.5 mtpa Clinker Unit and 3 mtpa Clinker Grinding unit, taking total capacity to 56.4 mtpa on a standalone basis. Furthermore, in Apr'25, the company also commissioned a 3.4 mtpa Clinker grinding Unit at Baloda Bazar, Raipur, Chhattisgarh, taking the total capacity to 59.8 mtpa. It aims to reach the cement production capacity of 80 mtpa by FY28.
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Axis Securities Report
Shree Cement Ltd.'s capacity expansion plan remains on track, complemented by cost-optimisation measures, premiumization, and brand-strengthening initiatives to enhance its market positioning.
It enjoys a strong presence in its core markets of Northern and Eastern India, where demand trends remain encouraging, supported by healthy cement consumption.
The stock trades at 20x/17x FY26E/FY27E EV/Ebitda, respectively. We maintain our Buy rating with a target price of Rs 33,960/share, valuing the company at 19x FY27E EV/Ebitda, implying a 13% upside from the current market price.
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