Shree Cement Limited (SHREECEM) AI Stock Analysis

• Market Cap: ₹842.10B
• Dividend Yield: 0.73%
• Average Volume (3M): 366.00
• Price to Earnings (P/E): 89.9
• Beta (1Y): 0.90
• Revenue Growth: 1.58%
• EPS Growth: -0.75%
• Country: IN
• Employees: 7,073
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 77.22
• Shares Outstanding: 36,080,750
• 10 Day Avg. Volume: 125
• 30 Day Avg. Volume: 366
• PEG Ratio: -1.83
• Price to Book (P/B): 5.07
• Price to Sales (P/S): 5.72
• P/FCF Ratio: 133.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹28,300.00
• Price Target Upside: 4.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 494.66
• Revenue Forecast (FY): ₹197.22B

• Rating: 57 Neutral
• Price Target: ₹24,156.00 ▼(-10.62% Downside)
• Action: Reiterated Date: 10/21/25
• Date: Action: Reiterated 10/21/25

Shree Cement Limited's overall stock score reflects a strong financial foundation but is weighed down by technical indicators suggesting bearish momentum and a high valuation. The company's robust balance sheet and cash flow generation are positive, but recent profitability challenges and overvaluation concerns impact the overall score.

Positive Factors

Balance Sheet Strength

A strong equity position and low debt-to-equity provide durable financial flexibility. This structural balance-sheet strength reduces refinancing risk, supports capital allocation for maintenance and growth capex, and enables the company to withstand cyclical weakness in construction demand over months.

Cash Generation

Consistently strong operating cash flows show the company can generate internal liquidity from core cement operations. Reliable cash generation supports reinvestment, maintenance of integrated plants, and potential shareholder returns without persistent reliance on external financing, even if FCF timing varies.

Integrated Operations & Brands

Nationwide integrated plants and established brands create sustainable competitive advantages: scale economies, logistics leverage, and channel relationships. Integrated manufacturing plus recognized brands support pricing power and resilience to regional demand variability across construction cycles.

Negative Factors

Revenue Decline

A persistent decline in revenue and net income signals weakening demand realization or competitiveness. Over a multi-month horizon, shrinking top line reduces ability to cover fixed costs, limits reinvestment capacity, and heightens pressure on margins unless market share or pricing is restored.

Volatile Free Cash Flow

Material FCF volatility undermines cash planning and makes funding capex or dividends less predictable. Even with strong operating cash, swings in free cash flow can force short-term financing or delay strategic investments, weakening the company's ability to execute multi-month growth or efficiency programs.

Profitability Pressure

Falling EBIT and net margins indicate rising operating costs or pricing stress despite maintained gross margins. Continued margin compression can erode return on invested capital and limit funds available for expansion or resilience initiatives, creating a structural headwind over coming months.

Shree Cement Limited Business Overview & Revenue Model

Company Description

Shree Cement Limited manufactures and sells cement and clinker in India and internationally. It offers cement under the Roofon, Bangur Power, Shree Jung Rodhak, Bangur Cement, and Rockstrong brand names. The company also engages in the generation of power with a total capacity of 771 megawatts through thermal, waste heat recovery, solar, and wind power plants. Further, it produces autoclaved aerated concrete blocks, a lightweight and precast building material. Shree Cement Limited was incorporated in 1979 and is based in Kolkata, India.

How the Company Makes Money

Shree Cement primarily makes money by manufacturing and selling cement and related products to customers in the construction value chain (including individual home builders, contractors, real-estate developers, and infrastructure project operators). Its key revenue stream is the sale of cement (including blended and ordinary Portland cement variants) sold through a combination of dealer/distributor networks and direct institutional/large-project sales, with pricing and volumes influenced by regional demand, capacity utilization, and competitive dynamics. A secondary revenue stream comes from the sale of clinker (an intermediate product in cement making) when produced in excess of internal grinding needs or to optimize plant economics. The company’s earnings are also supported by operational levers typical to cement producers—such as cost control in power and fuel, logistics optimization (inbound raw materials and outbound cement dispatch), and efficiency improvements at plants—which affect margins on its cement and clinker sales. If the company earns from additional segments (e.g., power generation/renewables, alternative fuels, or other by-products), specific revenue contribution details are not available in this response and are therefore null.

Shree Cement Limited Financial Statement Overview

Summary

Shree Cement Limited's financial performance is solid, with a strong balance sheet and effective cash flow generation. However, recent declines in revenue and net income, along with fluctuating free cash flow, indicate challenges in profitability and liquidity.

Income Statement

Shree Cement Limited's income statement demonstrates a generally declining trend in revenues and net income over the recent fiscal year. The gross profit margin remains strong, indicating efficient cost management, but the drop in net profit margin suggests pressure on profitability. Revenue growth has fluctuated, with a notable decline in the latest year, impacting the overall financial health. The EBIT and EBITDA margins indicate moderate operational efficiency, but the declining trend in EBIT suggests potential operational challenges.

Balance Sheet

The balance sheet of Shree Cement Limited reflects a strong equity position with a healthy equity ratio, indicating solid financial stability. The debt-to-equity ratio remains low, suggesting prudent financial leverage. ROE has been impacted by declining net income but remains positive, showing a capacity to generate returns for shareholders. Despite a slight increase in liabilities, the company's balance sheet remains robust, contributing to financial resilience.

Cash Flow

Cash flow analysis shows strong operating cash flows, reflecting effective cash generation from operations, although the free cash flow has been volatile. The free cash flow to net income ratio indicates a solid ability to convert net income into cash, despite recent capital expenditures. However, the free cash flow growth rate shows significant fluctuations, highlighting potential challenges in maintaining consistent liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	201.47B	190.72B	205.21B	176.44B	147.37B	131.77B
Gross Profit	123.59B	113.70B	117.13B	91.26B	92.10B	91.20B
EBITDA	53.83B	45.23B	51.15B	34.19B	42.54B	45.18B
Net Income	17.19B	11.23B	23.96B	12.71B	23.32B	22.86B
Balance Sheet
Total Assets	302.00B	284.92B	279.53B	263.34B	237.49B	215.13B
Cash, Cash Equivalents and Short-Term Investments	75.84B	67.39B	57.03B	35.49B	37.79B	44.24B
Total Debt	21.42B	10.46B	16.56B	27.25B	21.29B	22.30B
Total Liabilities	77.13B	69.13B	72.09B	76.57B	62.38B	60.65B
Stockholders Equity	224.42B	215.38B	207.03B	186.36B	174.60B	153.97B
Cash Flow
Free Cash Flow	-26.80M	8.16B	2.07B	-7.46B	4.50B	31.19B
Operating Cash Flow	9.58B	49.20B	33.47B	25.69B	26.68B	42.54B
Investing Cash Flow	-14.53B	-37.28B	-14.18B	-24.14B	-21.51B	-26.45B
Financing Cash Flow	6.12B	-12.96B	-17.10B	-2.77B	-8.49B	-12.33B

Shree Cement Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27026.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHREECEM, the sentiment is Negative. The current price of 27026.65 is above the 20-day moving average (MA) of 25368.62, above the 50-day MA of 26426.85, and below the 200-day MA of 28351.73, indicating a bearish trend. The MACD of -913.62 indicates Positive momentum. The RSI at 28.14 is Positive, neither overbought nor oversold. The STOCH value of 7.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHREECEM.

Shree Cement Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEDL	78 Outperform	₹2.68T	10.33	―	8.78%	8.87%	2.25%
RATNAMANI	68 Neutral	₹165.12B	37.97	―	0.60%	9.51%	14.31%
UPL	68 Neutral	₹513.80B	42.42	―	0.77%	8.14%	―
AMBUJACEM	64 Neutral	₹1.06T	168.78	―	0.37%	14.92%	63.27%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SHREECEM	57 Neutral	₹842.10B	89.88	―	0.73%	1.58%	-0.75%
JKCEMENT	57 Neutral	₹391.00B	61.18	―	0.27%	12.93%	27.03%

Shree Cement Limited Corporate Events

Shree Cement to Set Up Wholly Owned Subsidiary in Mauritius

Shree Cement Limited has approved the incorporation of a wholly owned subsidiary in Mauritius, to be named Shree Cement (Mauritius) Limited, with an initial authorised capital of MUR 5,000,000 fully subscribed in cash. The new entity will handle installation and operation of cement, blending, storage and packaging facilities, as well as trading in cement, clinker, coal and other materials, potentially strengthening Shree Cement’s offshore presence and international trading capabilities.

The Mauritian subsidiary will be entirely controlled by Shree Cement, which will hold 100% of the share capital, and no governmental or regulatory approvals are required for its incorporation. This move signals a strategic step to expand logistical, operational and trading reach beyond India, positioning the company to tap regional markets and optimize its supply chain through an overseas hub.

Shree Cement Fully Commissions Kodla Integrated Plant, Lifts Capacity to Nearly 70 MTPA

Shree Cement Limited has fully commissioned its integrated cement plant at Village Kodla in Karnataka’s Kalaburagi district by bringing a 3.50 MTPA cement mill online. The cement capacity of this unit, initially planned at 3.0 MTPA, was optimized to 3.50 MTPA at commissioning through equipment and process improvements.

With the latest commissioning, the company’s total cement capacity at Kodla has risen to 6.50 MTPA, taking its overall India cement capacity close to 70 MTPA. This expansion bolsters Shree Cement’s production base in South India and supports its broader growth strategy in the domestic cement market.

Shree Cement Reassigns HR Leadership, Combines CHRO Role With Power Management Head

Shree Cement Limited has announced a senior management reshuffle in its human resources function, with Chief Human Resources Officer (CHRO) Vinod Kumar Chaturvedi stepping down from his designation as a Senior Management Person as of the close of business on 31 January 2026 to assume a new role within the company. The group has assigned Joint President – Power Management, Manmohan Rathi, who already holds senior management status, the additional responsibility of CHRO, signalling an internal reallocation of leadership that consolidates HR oversight with an existing operational head and suggests continuity in management while potentially aligning people strategy more closely with the company’s power and operational functions.

Shree Cement to Appeal Bihar GST Demand Order

Shree Cement Limited has disclosed that it has received a Goods and Services Tax (GST) demand order from the Deputy Commissioner, State Tax, Special Circle, Patna, Bihar, confirming a tax demand of about Rs 14.93 crore, along with interest of roughly Rs 9.18 crore and a penalty of about Rs 1.49 crore. The order, received on 26 December 2025, relates to alleged issues over valuation and excess input tax credit claimed; however, the company has stated that the demand will not have a major financial impact on its operations and intends to challenge the order by filing an appeal under the Bihar GST Act by 25 March 2026.

Shree Cement Declares Lockout at Chhattisgarh Plant, Sees Hit to Output

Shree Cement Limited has declared a lockout at its cement plant in Baloda Bazar, Raipur, Chhattisgarh, effective 18 December 2025, citing non-cooperation from workmen. The company has indicated that the disruption is expected to result in an estimated production loss of around 10,000 tonnes of cement per day, though the financial impact is still being assessed. All plant assets are insured, which may mitigate potential damage-related losses, and management is monitoring the situation with a commitment to update stakeholders as developments unfold, highlighting near-term operational risk at a key facility and possible implications for supply to regional markets.