Shree Cement Ltd

NSE: SHREECEM BSE: 500387

₹23415

(0.51%)

Mon, 15 Jun 2026, 02:16 am

Market Cap (in Cr)84697.93

PE Ratio48.45

Dividend0.60

Non-Energy Minerals

Construction Materials

24.5K

Shree Cement Analysis

Pros

Dividends after 3 years are expected to be thoroughly covered by earnings (10.2x coverage).

Cons

Shree Cement is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
No need to calculate the sustainability of Shree Cement's dividends as it is not paying a notable one for India.
Shree Cement is not paying a notable dividend for India, therefore no need to check if the payments are stable.
Shree Cement's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
Shree Cement's dividend is below the markets top 25% of dividend payers in India (3.08%).

Pros

Shree Cement's earnings growth is expected to exceed the low risk savings rate of 7.2%.
Performance (ROE) is expected to be above the current IN Basic Materials industry average.

Cons

Cash flow for Shree Cement is expected to decrease over the next 2 years.
Shree Cement's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).
Shree Cement's earnings growth is positive but not above the India market average.
Shree Cement's earnings are expected to decrease over the next year.
Shree Cement's net income is expected to increase but not above the 50% threshold in 2 years time.
Shree Cement is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
A decline in Shree Cement's performance (ROE) is expected over the next 3 years.
Shree Cement's revenue is expected to increase but not above the 50% threshold in 2 years time.
Shree Cement's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Shree Cement's revenue growth is positive but not above the India market average.

Pros

Shree Cement is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Shree Cement is profitable, therefore cash runway is not a concern.
Shree Cement is profitable, therefore cash runway is not a concern.
Debt is well covered by operating cash flow (177.4%, greater than 20% of total debt).
Debt is covered by short term assets, assets are 3.5x debt.
Shree Cement's cash and other short term assets cover its long term commitments.
The level of debt compared to net worth has been reduced over the past 5 years (19.2% vs 16.9% today).
Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).
Shree Cement's level of debt (16.9%) compared to net worth is satisfactory (less than 40%).

Cons

Pros

The average tenure for the Shree Cement board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Prashant's compensation has been consistent with company performance over the past year, both up more than 20%.
The tenure for the Shree Cement management team is about average.

Cons

Prashant's remuneration is higher than average for companies of similar size in India.

Pros

Cons

Pros

Shree Cement's 1-year earnings growth exceeds its 5-year average (52.4% vs 7.3%)
Shree Cement's year on year earnings growth rate has been positive over the past 5 years.
Shree Cement used its assets more efficiently than the IN Basic Materials industry average last year based on Return on Assets.
Shree Cement's earnings growth has exceeded the IN Basic Materials industry average in the past year (52.4% vs 17%).

Cons

Shree Cement's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Shree Cement has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

Pros

500387 outperformed the Basic Materials industry which returned -15.5% over the past year.
500387 outperformed the Market in India which returned -14.5% over the past year.
BSE:500387 is up 15.2% outperforming the Basic Materials industry which returned 9.2% over the past month.
BSE:500387 is up 15.2% outperforming the market in India which returned 8% over the past month.

Cons

Shree Cement's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
Shree Cement's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
Shree Cement is overvalued based on assets compared to the IN Basic Materials industry average.
Shree Cement is poor value based on expected growth next year.
Shree Cement is overvalued based on earnings compared to the IN Basic Materials industry average.
Shree Cement is overvalued based on earnings compared to the India market.