Check Before You Invest : Shree Cement Ltd

Snapshot

Q.1 Which industry/sub-sector does Shree Cement Ltd belong to?

Shree Cement Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q.2 Is Shree Cement Ltd a good quality company?

Shree Cement Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Shree Cement Ltd undervalued or overvalued?

Shree Cement Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Shree Cement Ltd a good buy now?

Shree Cement Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Shree Cement Ltd?

Shree Cement Ltd revenue growth is -7.4% for FY-2025, which is below its 5-year CAGR of 8.67%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Shree Cement Ltd?

Shree Cement Ltd Return on capital employed is 7.32% for FY-2025, which is below its 5-year historical median of 15.51%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.3 Return on Asset of Shree Cement Ltd?

Shree Cement Ltd Return on Asset is 4.44%, which is below its 5-year historical median of 9.5%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Shree Cement Ltd?

Shree Cement Ltd Return on equity is 5.75% for FY-2025, which is below its 5-year historical median of 12.77%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Shree Cement Ltd?

Shree Cement Ltd Cash conversion cycle is 45 days, in line with its 5-year historical median of 45 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.67	0.67
ROE	5.75	12.77
ROCE	7.32	15.51
Cash Conversion Cycle	45 days	45 days

Q.6 Gross Profit margin of Shree Cement Ltd?

Shree Cement Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.3% for FY-2025, which is below its 5-year median of 25.2%, indicating decreasing margins.

Q.7 Operating Profit Margin of Shree Cement Ltd?

Shree Cement Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.24% for FY-2025, which is below its 5-year median of 22.4% indicating decreasing margins.

Q.8 Net Profit Margin of Shree Cement Ltd?

Shree Cement Ltd Net Profit Margin is 6.63% for FY-2025, is below with its 5-year median of 12.67%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	23.3	25.2
Operating Profit Margin	21.24	22.4
Net Profit Margin	6.63	12.67

Q.9 Debt to Equity ratio of Shree Cement Ltd?

Shree Cement Ltd Debt-to-Equity ratio is 0.04, which is lower with the industry average of 0.28, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Shree Cement Ltd?

Shree Cement Ltd Debt to cash flow from operations is 0.16, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shree Cement Ltd?

Promoters hold 62.55% of the Shree Cement Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Shree Cement Ltd vs industry peers?

Shree Cement Ltd revenue CAGR is 8.67%, compared to the industry median CAGR of 8.67%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-7.4	8.7
Gross Profit Growth	-9.8	3.7
Operating Profit Growth	-11.7	2.9
Net Profit Growth	-51.5	16.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.67	0.67
ROE	5.75	12.77
ROCE	7.32	15.51
Cash Conversion Cycle (days)	45.04	15

Valuation & price assessment

Q.1 Stock return of Shree Cement Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 7.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	7.2%	-2.3%	0.3%	-16%

Q.3 Valuation ratios of Shree Cement Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	51.58	49.77	22.85
Price to Book	4.02	4.88	1.92
Price to Sales	4.72	5.37	1.40
EV to EBITDA	18.35	21.71	11.62

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