NSEI:SHREECEM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Shree Cement Limited manufactures and sells cement and clinker in India and internationally. More Details


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Shree Cement's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SHREECEM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

SHREECEM

4.9%

IN Basic Materials

1.6%

IN Market


1 Year Return

4.3%

SHREECEM

10.0%

IN Basic Materials

2.4%

IN Market

Return vs Industry: SHREECEM underperformed the Indian Basic Materials industry which returned 10% over the past year.

Return vs Market: SHREECEM exceeded the Indian Market which returned 2.4% over the past year.


Shareholder returns

SHREECEMIndustryMarket
7 Day-0.9%4.9%1.6%
30 Day10.8%15.0%4.2%
90 Day-1.6%17.8%7.3%
1 Year4.7%4.3%10.7%10.0%4.2%2.4%
3 Year11.6%10.4%-5.5%-7.2%-1.5%-6.2%
5 Year75.0%71.1%46.3%42.0%40.4%30.0%

Price Volatility Vs. Market

How volatile is Shree Cement's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shree Cement undervalued compared to its fair value and its price relative to the market?

50.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHREECEM (₹20991.7) is trading above our estimate of fair value (₹2985.88)

Significantly Below Fair Value: SHREECEM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SHREECEM is poor value based on its PE Ratio (50.3x) compared to the IN Basic Materials industry average (19.5x).

PE vs Market: SHREECEM is poor value based on its PE Ratio (50.3x) compared to the Indian market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: SHREECEM is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: SHREECEM is overvalued based on its PB Ratio (5.8x) compared to the IN Basic Materials industry average (1x).


Next Steps

Future Growth

How is Shree Cement forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHREECEM's forecast earnings growth (19.7% per year) is above the savings rate (7.2%).

Earnings vs Market: SHREECEM's earnings (19.7% per year) are forecast to grow slower than the Indian market (25.8% per year).

High Growth Earnings: SHREECEM's earnings are forecast to grow, but not significantly.

Revenue vs Market: SHREECEM's revenue (11.7% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: SHREECEM's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHREECEM's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Shree Cement performed over the past 5 years?

7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHREECEM has high quality earnings.

Growing Profit Margin: SHREECEM's current net profit margins (12.3%) are higher than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: SHREECEM's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: SHREECEM's earnings growth over the past year (33.9%) exceeds its 5-year average (7.5% per year).

Earnings vs Industry: SHREECEM earnings growth over the past year (33.9%) exceeded the Basic Materials industry -4.6%.


Return on Equity

High ROE: SHREECEM's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is Shree Cement's financial position?


Financial Position Analysis

Short Term Liabilities: SHREECEM's short term assets (₹78.9B) exceed its short term liabilities (₹34.1B).

Long Term Liabilities: SHREECEM's short term assets (₹78.9B) exceed its long term liabilities (₹33.0B).


Debt to Equity History and Analysis

Debt Level: SHREECEM's debt to equity ratio (25%) is considered satisfactory.

Reducing Debt: SHREECEM's debt to equity ratio has increased from 17.3% to 25% over the past 5 years.

Debt Coverage: SHREECEM's debt is well covered by operating cash flow (120.1%).

Interest Coverage: SHREECEM's interest payments on its debt are well covered by EBIT (24.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Shree Cement current dividend yield, its reliability and sustainability?

0.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHREECEM's dividend (0.33%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: SHREECEM's dividend (0.33%) is low compared to the top 25% of dividend payers in the Indian market (2.28%).


Stability and Growth of Payments

Stable Dividend: SHREECEM's dividend payments have been volatile in the past 10 years.

Growing Dividend: SHREECEM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.8%), SHREECEM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHREECEM's dividends in 3 years are forecast to be well covered by earnings (20.1% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Materials industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Prashant Bangur (40 yo)

4.67yrs

Tenure

₹207,684,000

Compensation

Mr. Prashant Bangur has been a Joint Managing Director of Shree Cement Limited since February 2, 2016. Mr. Bangur served as an Executive President at Shree Cement Ltd., until February 2, 2016 and served as ...


CEO Compensation Analysis

Compensation vs Market: Prashant's total compensation ($USD2.82M) is above average for companies of similar size in the Indian market ($USD1.36M).

Compensation vs Earnings: Prashant's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Prashant Bangur
Joint MD & Whole-Time Director4.67yrs₹207.68m1.08%
₹ 8.2b
Hari Bangur
MD & Executive Director28.25yrs₹417.60m1.34%
₹ 10.1b
Subhash Jajoo
Chief Finance Officer6.08yrs₹10.68mno data
Shyam Khandelwal
Compliance Officerno data₹17.10mno data
Prakash Chhangani
Whole Time Director2.25yrs₹43.72mno data
Vinay Saxena
Senior Vice President of Operationsno datano datano data
Kamlesh Jain
Vice President of Accounts & Contract Cell3.75yrsno datano data
Manoranjan Kumar
Chief Information Officer of IT & ERP3.92yrsno datano data
Diwakar Payal
President of Marketingno data₹14.67mno data
Kirit Gandhi
Joint President of Material Managementno datano data0.00014%
₹ 1.1m
Arvind Khicha
Joint President of Commercialno data₹3.07mno data
Narip Bajwa
Senior Vice President of Marketing2.92yrsno datano data

3.9yrs

Average Tenure

58yo

Average Age

Experienced Management: SHREECEM's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Prashant Bangur
Joint MD & Whole-Time Director4.67yrs₹207.68m1.08%
₹ 8.2b
Hari Bangur
MD & Executive Director28.25yrs₹417.60m1.34%
₹ 10.1b
Prakash Chhangani
Whole Time Director2.25yrs₹43.72mno data
Uma Ghurka
Additional Non-Executive Independent Director0.92yr₹2.65mno data
Ratan Gaggar
Independent & Non-Executive Director25.75yrs₹3.18mno data
Shreekant Somany
Independent & Non-Executive Director20yrs₹3.18mno data
Om Setia
Independent & Non-Executive Director21.25yrs₹3.40mno data
Benu Bangur
Non-Executive Chairman8.75yrs₹2.80m0.028%
₹ 214.6m
Yoginder Alagh
Independent & Non-Executive Director16yrs₹3.18mno data
Nitin Desai
Independent & Non-Executive Director9.42yrs₹3.33mno data
Sanjiv Shelgikar
Non-Executive Independent Director5.17yrs₹3.25mno data

9.4yrs

Average Tenure

75.5yo

Average Age

Experienced Board: SHREECEM's board of directors are considered experienced (9.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.


Top Shareholders

Company Information

Shree Cement Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shree Cement Limited
  • Ticker: SHREECEM
  • Exchange: NSEI
  • Founded: 1979
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹757.396b
  • Shares outstanding: 36.08m
  • Website: https://www.shreecement.com

Number of Employees


Location

  • Shree Cement Limited
  • 21, Strand Road
  • Kolkata
  • West Bengal
  • 700001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500387BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1994
SHREECEMNSEI (National Stock Exchange of India)YesEquity SharesININRAug 1994

Biography

Shree Cement Limited manufactures and sells cement and clinker in India and internationally. It offers cement under the Shee Jung Rodhak, Bangur, Rockstrong, Roofon Concrete Master, and Bangur Power brand ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 12:48
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.