Analysts' corner

SHREE CEMENT
Reco price/date: Rs 3,394/August 28
Current price/target price: Rs 3,497/Rs 3,850
Shree Cement continued its streak of beating Street estimates, delivering a robust performance in the quarter ended June, with earnings before interest, tax, depreciation and amortisation (Ebitda) growth of 86 per cent year-on-year at Rs 481 crore, significantly ahead of our and the Street's estimates (Emkay's estimate was Rs 400 crore; consensus was Rs 380 crore). Shree's Ebitda/t, at Rs 1,320, rose 50 per cent year-on-year and 11 per cent quarter-on-quarter, significantly ahead of estimates of Rs 1,140, led by lower costs. Cement revenues (Rs 1,280 crore) rose 40 per cent year-on-year, led by impressive volume growth of 25 per cent (3.37 mt), while cement realisation, at Rs 3,806/t, rose 11.8 year-on-year and 5.4 per cent quarter-on-quarter. Net power revenue, at Rs 173 crore (a 70 per cent annual rise), was driven by a 64 per cent rise in power volume (390 million units), while power realisation increased four per cent annually to Rs 4.44/unit. 'Accumulate'.

Emkay Global