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Shree Cement share price rises amid mixed brokerages' views—Buy, sell, or hold?
Shree Cement continued expanding its green power portfolio, which reached 612.5 MW after commissioning a new 20 MW solar plant at Chitrakoot, Uttar Pradesh, making green energy now 63 per cent of total power consumption — among the highest in the Indian cement sector.
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Shree Cement reported a 15.5 per cent YoY increase in standalone revenue to Rs 43 billion |Image credit-Freepik/Representational|
Written By: Shristi Rani
Updated: Wed, Oct 29, 2025
12:32 PM IST
12:32 PM IST
New Delhi, ZeeBiz WebDesk
Shree Cement Share Price: Investors are keeping a close watch on shares of Shree Cement after the company released its financial results for the quarter ended September 2025. The stock rose nearly 2.85 per cent to Rs 28,666 in the early hours of trade on Wednesday. As of 12 pm, Shree Cement's stock was trading at Rs 28,999.95, up by 1.42 per cent from the previous close.
Shree Cement Q2 result highlights
Shree Cement has reported a mixed performance for the quarter ended September 2025 as the margins came in below expectations. The company's revenue increased by 15 per cent to Rs 4,303 crore, while the profit after tax (PAT) saw a significant rise of 198 per cent to Rs 227 crore.
Its EBITDA grew by 19 per cent to Rs 841 crore, resulting in an improved EBITDA margin of 19.5 per cent compared to 15.9 per cent in the previous period. Additionally, the company's total cement sales volume grew by 6.8 per cent in this quarter.
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Brokerages' views on Shree Cement
Systematix on Shree Cement
Systematix has maintained a 'hold' rating on Shree Cement with a target price of Rs 31,325.
The brokerage highlighted that Shree Cement's Q2 result was a mixed bag as revenue and volume were in line with Systematix's estimates, but EBITDA was a miss due to higher operational expenses.
The brokerage noted that Shree Cement reported a 15.5 per cent year-on-year (YoY) increase in standalone revenue to Rs 43 billion, in line with the brokerage's expectations, though it declined 13 per cent quarter-on-quarter (QoQ).
Sales volume grew 4 per cent YoY to 7.9 million tonnes, also matching estimates. Blended realisation improved by 11 per cent YoY to Rs 5,447 per tonne, supported by a higher share of premium products in the sales mix — which rose to 21 per cent of total volumes compared to 15 per cent in Q2FY25.
EBITDA grew 43.7 per cent YoY (but fell 31 per cent QoQ) to Rs 8.5 billion, coming in about 15 per cent below estimates, mainly due to cost pressures.
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Systematix also noted that Shree Cement continued expanding its green power portfolio, which reached 612.5 MW after commissioning a new 20 MW solar plant at Chitrakoot, Uttar Pradesh, making green energy now 63 per cent of total power consumption — among the highest in the Indian cement sector.
According to Systematix, the broader Indian cement industry is expected to grow around 9 per cent in FY26, driven by strong government capital spending, rural housing, and infrastructure development. However, Shree Cement’s recent market share losses remain a concern despite its focus on premiumization and energy efficiency.
Jefferies on Shree Cement
Jefferies has maintained a 'buy' rating on Shree Cement but has lowered its target price to Rs 33,420 from Rs 35,150 following weak performance in the September quarter.
The revision is primarily driven by miss on higher costs that affected profitability, prompting a cut in their EBITDA estimates by around 3 to 5 per cent. The brokerage noted that despite this, the management has reiterated its focus on 'value over volume', indicating a preference for profitability rather than aggressively chasing market share.
The brokerage highlighted that the outlook for Shree Cement's stock is expected to improve post any turnaround in industry cement prices expected in the March quarter.
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CLSA on Shree Cement
CLSA has maintained an 'accumulate' rating on Shree Cement but has also lowered its target price to Rs 32,300 from Rs 33,500. The brokerage notes that Shree Cement’s Q2 EBITDA came in line with expectations, driven by a 4 per cent year-on-year (YoY) volume growth and an EBITDA per tonne of Rs 1,078.
According to CLSA, the company has traded market share for realisation over the last few quarters. With Shree Cement now achieving its target for premiumization of its product portfolio, the company has guided for line growth.
CLSA expects that the sector will benefit from demand tailwinds following the festive season, which could provide a boost to Shree Cement’s performance in the near term.
Citi on Shree Cement
Citi has maintained a 'buy' rating on Shree Cement but has reduced its target price to Rs 33,000 from Rs 35,500 following its Q2 performance.
The company’s EBITDA was around 14 per cent below estimates, primarily due to higher input costs. EBITDA per tonne declined to Rs 1,105 compared to Rs 1,375 in Q1.
Realisations were down 2 per cent quarter-on-quarter (QoQ), while costs rose by 4 per cent and volumes dropped by about 12 per cent. However, the share of premium products increased to 21 per cent of total sales from 18 per cent in the previous quarter.
Citi continues to maintain a positive view on the stock, citing resilient margins and attractive valuations, as the company trades at an enterprise value per tonne (EV/t) of around $160.
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Morgan Stanley on Shree Cement
Morgan Stanley has maintained an 'equalweight' rating on Shree Cement with a target price of Rs 29,600, indicating
JP Morgan on Shree Cement
JP Morgan has also maintained its 'neutral' rating with a target price of Rs 28,110.
Goldman Sachs on Shree Cement
Goldman Sachs has maintained a 'neutral' rating on Shree Cement with a target price of Rs 31,250. For Q2FY26, the company’s revenue was 1 per cent above estimates, while EBITDA came in 4 per cent below the brokerage’s expectations, largely due to higher costs, including a one-time expense related to a power sub-station.
EBITDA per tonne stood at Rs 1,077, or about Rs 30 higher when adjusted for this one-off cost. Cement and clinker volumes grew 4 per cent (YoY), with cement volumes up 6.8 per cent after several quarters of market share losses.
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Realisations, however, fell 2 per cent QoQ, though the premium product mix improved to 21 per cent from 15 per cent a year ago and is expected to remain stable. Shree Cement has retained its long-term capacity target of 80 MTPA but may adjust the pace of commissioning new plants depending on market demand.
The brokerage also highlighted that the company’s UAE operations continue to perform strongly, with revenue up 40 per cent YoY to €458 crore and EBITDA at Rs 123 crore — marking the second consecutive quarter of EBITDA exceeding Rs 100 crore.
Despite trimming FY26 and FY27 volume growth estimates to 5 per cent and 14 per cent, and reducing EBITDA forecasts by 2 per cent and 5 per cent, it has raised its valuation multiple to 18x, on strong UAE performance.
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Shristi Rani
Shristi Rani
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