Shree Cement board approves business expansion

The board of Shree Cement has allowed setting up a clinker unit having a capacity of upto 12,000 tons per day (TPD) at Raipur in Chhattisgarh.

The project will require a total investment of Rs 1,000 crore, which will be financed through internal accruals and debt. The capacity is expected to be added by the quarter ending September 2022.

The existing cement capacity of the company is 40.40 million ton per annum (MTPA). During the year 2019-20 the utilization rate was 64%. The announcement was made during market hours today, 29 September 2020.

Shree Cement's consolidated net profit fell 13.6% to Rs 330.35 crore on 24.9% drop in net sales to Rs 2,480.14 crore in Q1 June 2020 over Q1 June 2019.

Shares of Shree Cement were down 0.76% at Rs 19,392.95. Shree Cement is a leading cement manufacturer in the country having its operations spread across several states. The company also has business interest in power generation and trading.

The scrip has risen 25.11% from its 52-week low of Rs 15,500 hit on 3 April 2020. On the technical front, the stock's RSI (relative strength index) stood at 44.667. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading below its 50-day moving average (DMA) placed at 20,808.57 and its 200-day moving average (DMA) placed at 21,112.94.

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