Low base, premium mix and new capacity supported gains
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While Nuvama Institutional Equities has reiterated its 'Hold' rating on Shree Cement, Choice Institutional Equities has maintained a 'Sell' call, citing expensive valuations and limited upside
Shree Cement Ltd, the country's third-largest cement group by capacity, on Tuesday, reported over fourfold jump in consolidated net profit to Rs 309.82 crore for the September quarter of FY26, helped by sales volume growth and premiumisation. The company had posted a net profit of Rs 76.64 crore in the July-September period a year ago, according to a regulatory filing from the Bangur family-promoted Shree Cement Ltd (SCL). Its revenue from operations was up 17.43 per cent to Rs 4,761.07 crore in the September quarter of FY26. It was at Rs 4,054.17 crore in the corresponding quarter of the preceding fiscal year. The revenue growth was "driven by volumes, premiumisation push and value over volume strategy adopted by the company", according to an earnings statement by the company. Total expenses of SCL were at Rs 4,506.37 crore, up 7 per cent in the September quarter. Though the company has not specified the total sales volume, however, said it was "up by 6.8 per cent on a YoY ...
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Brokerages offered a mixed yet constructive view on Shree Cement 's Q1 performance, highlighting improved realisations, expanding margins, and long-term growth plans.
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In FY25, revenue was down 8 per cent, while EBITDA was down 12 per cent and PAT was down 51 per cent YoY. Volumes were flat YoY
During FY26, the cement industry is expected to achieve 6.5-7.5 per cent demand growth fuelled by infrastructure projects, rural recovery and real estate momentum.
The company's net profit dropped about 16% to 5.56 billion rupees ($65.2 million), just below analysts' average expectation of 5.59 billion rupees, per data compiled by LSEG
At 6:40 AM, GIFT Nifty futures were trading 90 points higher at 24,730 level, indicating a higher start.
UPL stock has recently given a breakout from a long consolidation phase and the declines post the breakout has seen strong buying interest
With industry focus shifting to volume growth in the closing quarter of the year, the likelihood of substantial price hikes in the near-term remains low due to the continued high competitive pressure
The management expects cement demand to grow on the back of likely increase in rural consumption aided by improved farm cash flows and sustained healthy demand for urban housing.
The company's consolidated net profit plunged 72.5 per cent to Rs 193 crore ($22.3 million) in the quarter ended Dec. 31