Comments
Reliance Securities
Shree Cement (Buy)
CMP: ₹16,744.05
Target: ₹21,500
Shree Cement (SCL) gained 1.87 per cent on Tuesday after rising 3 per cent on Monday on the expectation of healthy traction ahead due to sustained demand improvement and visible realisation recovery.
SCL is expected to report strong double digit volume growth in 1QFY19. We expect growth momentum to sustain led by foray into Southern markets. Further, recent improvement in realisation in the Northern and Eastern markets is expected to bode well in subsequent quarters.
SCL’s ability to increase its capacity and market share without stressing its balance sheet has been commendable and aided it to ensure premium valuations.
We believe its premium valuations to sustain on the back to strong cash generation and gain in further market share.
We maintain our fundamental ‘buy’ rating on the stock with a target price of ₹21,500.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.