Shree Cement Ltd. (SHREECEM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

J K Cements

Grasim Inds

ACC

Dalmia BharatLtd

UltraTech Cem.

India Cements

The Ramco Cement

Shree Cement

Ambuja Cements

Nuvoco Vistas

JSW Cement

Why is Shree Cement Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate -3.21% of over the last 5 years

With ROE of 7.7, it has a Very Expensive valuation with a 4.3 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.38%, its profits have fallen by -0.8%

Below par performance in long term as well as near term

Along with generating -1.38% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cement & Cement Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Shree Cement for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shree Cement

-1.43%

-0.07

20.27%

Sensex

4.69%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.32%

EBIT Growth (5y)

-3.21%

EBIT to Interest (avg)

8.91

Debt to EBITDA (avg)

0.55

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.83

Tax Ratio

24.61%

Dividend Payout Ratio

15.81%

Pledged Shares

Institutional Holding

24.98%

ROCE (avg)

12.90%

ROE (avg)

10.04%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.25

EV to EBIT

50.24

EV to EBITDA

19.15

EV to Capital Employed

5.29

EV to Sales

4.47

PEG Ratio

Dividend Yield

0.72%

ROCE (Latest)

10.54%

ROE (Latest)

7.66%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company

OPERATING CF(Y)

Highest at Rs 5,063.01 Cr

PBT LESS OI(Q)

At Rs 254.70 cr has Grown at 261.10%

PAT(Q)

At Rs 308.51 cr has Grown at 303.6%

DPS(Y)

Highest at Rs 110.00

DPR(Y)

Highest at 33.18%

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.56 times

NON-OPERATING INCOME(Q)

is 41.26 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Shree Cement

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 254.70 cr has Grown at 261.10%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 308.51 cr has Grown at 303.6%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Cash Flow - Annually

Highest at Rs 5,063.01 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Dividend per Share (DPS) - Annually

Highest at Rs 110.00 and Grown

each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 33.18%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Shree Cement

Non Operating Income - Quarterly

is 41.26 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debtors Turnover Ratio- Half Yearly

Lowest at 9.56 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio