CLSA says that strong volume growth driving Shree Cement; upgrades stock to Outperform
Shree Cement reported Q2 EBITDA of Rs 10 bn (+25%) on better top line and lower costs. Volumes (+14% YoY) and profitability (Rs 1513/T, +17%) both were above estimate. Better profitability was driven by better realisations and lower costs. This highlights a strong bounce-back from an underwhelming Q1. Post the recent underperformance, CLSA believes Shree Cement’s growth potential and superior return profile justify current valuations.
CLSA believes Shree Cement’s growth potential and superior return profile justify current valuations: Reuters