SHREECEM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | SHREECEM | Market Cap | 87,297 Cr. | Current Price | 24,195 ₹ | High / Low | 32,508 ₹ |
| Stock P/E | 50.4 | Book Value | 6,078 ₹ | Dividend Yield | 0.45 % | ROCE | 7.17 % |
| ROE | 5.69 % | Face Value | 10.0 ₹ | DMA 50 | 24,925 ₹ | DMA 200 | 26,690 ₹ |
| Chg in FII Hold | -1.13 % | Chg in DII Hold | 1.20 % | PAT Qtr | 279 Cr. | PAT Prev Qtr | 277 Cr. |
| RSI | 44.4 | MACD | 110 | Volume | 35,701 | Avg Vol 1Wk | 28,562 |
| Low price | 22,550 ₹ | High price | 32,508 ₹ | PEG Ratio | -2.45 | Debt to equity | 0.09 |
| 52w Index | 16.5 % | Qtr Profit Var | 21.4 % | EPS | 480 ₹ | Industry PE | 30.8 |
📊 SHREECEM reflects moderate fundamentals with strong EPS (₹480) but weak efficiency metrics — ROE (5.69%) and ROCE (7.17%) are below desirable compounding levels. The company maintains low leverage (Debt-to-equity: 0.09), ensuring financial stability. Valuation is stretched with P/E (50.4) significantly above industry average (30.8), and PEG ratio (-2.45) highlights poor growth relative to valuation. Current price ₹24,195 is below both DMA 50 (₹24,925) and DMA 200 (₹26,690), suggesting medium-term weakness. Entry zone is attractive near ₹22,500–23,500 for accumulation.
💡 Long-term investors may hold with a 3–5 year horizon if profitability improves. Exit strategy: partial profit booking near ₹26,500–27,000 resistance or full exit if ROE/ROCE remain weak and valuations stay stretched.
Positive
- 📈 EPS of ₹480 provides strong earnings visibility.
- 💰 Low debt-to-equity ratio (0.09) ensures balance sheet strength.
- 📊 PAT growth stable (₹277 Cr. → ₹279 Cr.).
Limitation
- ⚠️ ROE (5.69%) and ROCE (7.17%) are weak for long-term compounding.
- 📉 High P/E (50.4 vs industry 30.8) indicates overvaluation.
- 📊 Negative PEG ratio (-2.45) reflects poor growth efficiency.
Company Negative News
- 📉 FII holding declined (-1.13%), showing reduced foreign investor confidence.
- 📊 Price trading below both DMA 50 and DMA 200, indicating medium-term weakness.
Company Positive News
- 📈 DII holding increased (+1.20%), reflecting strong domestic institutional support.
- 📊 Quarterly profit variation (+21.4%) shows resilience despite weak margins.
Industry
- 🏭 Industry PE at 30.8 is much lower than SHREECEM’s 50.4, highlighting premium valuation.
- 📈 Cement sector benefits from infrastructure growth and housing demand but faces margin pressures from input costs.
Conclusion
⚖️ SHREECEM is a fundamentally stable company with strong EPS and low debt, but weak ROE/ROCE and stretched valuations limit upside potential. Ideal entry is near ₹22,500–23,500. Long-term investors may hold cautiously for 3–5 years, with exits near ₹26,500–27,000 or on deterioration of profitability metrics.
This structured HTML report captures SHREECEM’s fundamentals, valuation risks, and sector context with clear entry/exit guidance. Would you like me to extend this into a peer benchmarking overlay against UltraTech Cement, ACC, and Ambuja Cement to highlight relative positioning in the cement sector?