NSEI:SHREECEM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

5.0%

SHREECEM

2.8%

IN Basic Materials

2.4%

IN Market


1 Year Return

41.3%

SHREECEM

15.1%

IN Basic Materials

8.0%

IN Market

Return vs Industry: SHREECEM exceeded the Indian Basic Materials industry which returned 15.1% over the past year.

Return vs Market: SHREECEM exceeded the Indian Market which returned 8% over the past year.


Shareholder returns

SHREECEMIndustryMarket
7 Day5.0%2.8%2.4%
30 Day1.4%-1.5%2.5%
90 Day-5.6%-6.5%3.6%
1 Year41.8%41.3%15.8%15.1%10.3%8.0%
3 Year14.8%13.2%-3.1%-4.7%22.3%16.0%
5 Year131.3%127.1%46.1%41.4%42.8%29.3%

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?

50.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHREECEM (₹19515.6) is trading above our estimate of fair value (₹7569.82)

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 (50.1x) compared to the Basic Materials industry average (17.3x).

PE vs Market: SHREECEM is poor value based on its PE Ratio (50.1x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SHREECEM is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: SHREECEM is overvalued based on its PB Ratio (6.6x) 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 21 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHREECEM's forecast earnings growth (21.7% per year) is above the savings rate (7.6%).

Earnings vs Market: SHREECEM's earnings (21.7% per year) are forecast to grow faster than the Indian market (18.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SHREECEM's revenue (12.4% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: SHREECEM's revenue (12.4% 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 (17%).


Next Steps

Past Performance

How has Shree Cement performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SHREECEM's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: SHREECEM's earnings growth over the past year (13.6%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: SHREECEM earnings growth over the past year (13.6%) underperformed the Basic Materials industry 13.1%.


Return on Equity

High ROE: SHREECEM's Return on Equity (13.2%) is considered low.


Return on Assets

ROA vs Industry: SHREECEM has a higher Return on Assets than the Basic Materials industry average last year.


Return on Capital Employed

ROCE Improving: SHREECEM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Shree Cement's financial position?


Financial Position Analysis

Short Term Liabilities: SHREECEM's short term assets (₹54.7B) exceeds its short term liabilities (₹28.4B)

Long Term Liabilities: SHREECEM's short term assets (54.7B) exceeds its long term liabilities (31.4B)


Debt to Equity History and Analysis

Debt Level: SHREECEM's debt to equity ratio (20.8%) is considered satisfactory

Reducing Debt: SHREECEM's debt to equity ratio has reduced from 23.2% to 20.8% over the past 5 years.

Debt Coverage: SHREECEM's debt is well covered by operating cash flow (156.5%).

Interest Coverage: SHREECEM's interest payments on its debt are well covered by EBIT (1155.2x coverage).


Balance Sheet

Inventory Level: SHREECEM has a high level of physical assets or inventory.

Debt Coverage by Assets: SHREECEM's debt is covered by short term assets (assets are 2.543030x debt).


Next Steps

Dividend

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

0.31%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%0.6%markettop25%2.4%industryaverage0.6%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SHREECEM's dividend (0.31%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: SHREECEM's dividend (0.31%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).

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 (15.4%), 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 thoroughly covered by earnings (14.5% payout ratio).


Next Steps

Management

What is the CEO of Shree Cement's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Prashant Bangur (39yo)

3.7yrs

Tenure

₹230,107,000

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: Insufficient data to establish whether Prashant's total compensation is reasonable compared to companies of similar size in the Indian market.

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


Management Age and Tenure

3.3yrs

Average Tenure

60yo

Average Age

Experienced Management: SHREECEM's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

11.7yrs

Average Tenure

74.5yo

Average Age

Experienced Board: SHREECEM's board of directors are seasoned and experienced ( 11.7 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Diwakar Payal (61yo)

    President of Marketing

    • Tenure: 0yrs
    • Compensation: ₹14.67m
  • Shyam Khandelwal (49yo)

    Chief Risk & Compliance Officer and Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹15.02m
  • Kirit Gandhi (63yo)

    Joint President of Material Management

    • Tenure: 0yrs
  • Prakash Chhangani (59yo)

    Whole Time Director

    • Tenure: 1.3yrs
    • Compensation: ₹30.11m
  • Prashant Bangur (39yo)

    Joint MD & Whole-Time Director

    • Tenure: 3.7yrs
    • Compensation: ₹230.11m
  • Hari Bangur (67yo)

    MD & Executive Director

    • Tenure: 27.3yrs
    • Compensation: ₹462.43m
  • Vinay Saxena

    Senior Vice President of Operations

    • Tenure: 0yrs
  • Kamlesh Jain

    Vice President of Accounts & Contract Cell

    • Tenure: 2.8yrs
  • Subhash Jajoo

    Chief Finance Officer

    • Tenure: 5.1yrs
    • Compensation: ₹10.25m
  • Manoranjan Kumar

    Chief Information Officer

    • Tenure: 2.9yrs

Board Members

  • Ratan Gaggar (87yo)

    Independent & Non-Executive Director

    • Tenure: 24.8yrs
    • Compensation: ₹4.13m
  • Shreekant Somany (71yo)

    Independent & Non-Executive Director

    • Tenure: 19yrs
    • Compensation: ₹3.83m
  • Prakash Chhangani (59yo)

    Whole Time Director

    • Tenure: 1.3yrs
    • Compensation: ₹30.11m
  • Prashant Bangur (39yo)

    Joint MD & Whole-Time Director

    • Tenure: 3.7yrs
    • Compensation: ₹230.11m
  • Om Setia (81yo)

    Independent & Non-Executive Director

    • Tenure: 20.3yrs
    • Compensation: ₹4.13m
  • Hari Bangur (67yo)

    MD & Executive Director

    • Tenure: 27.3yrs
    • Compensation: ₹462.43m
  • Benu Bangur (85yo)

    Non-Executive Chairman

    • Tenure: 7.8yrs
    • Compensation: ₹3.60m
  • Yoginder Alagh (80yo)

    Independent & Non-Executive Director

    • Tenure: 15yrs
    • Compensation: ₹4.13m
  • Nitin Desai (78yo)

    Independent & Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: ₹4.13m
  • Sanjiv Shelgikar (64yo)

    Non-Executive Independent Director

    • Tenure: 4.2yrs
    • Compensation: ₹4.05m

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: ₹650.751b
  • Shares outstanding: 34.84m
  • 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. The company operates in two segments, Cement and Power. It offers cement under the Shree Jung Rodhak, Bangur, Ba ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:43
End of Day Share Price2019/10/22 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.