Street View: Near-term outlook soft for India's Shree Cement

Shree Cement

08/08/2024 08:59

** Shares of India's third-largest cement maker by market cap Shree Cement
 SHCM.NS  down 3%, set for fifth straight session of fall
    ** SHCM had missed profit estimates on Wednesday, hurt by dampened demand
and lower pricing in its core north market  

HEADWINDS AHEAD FOR THE NEXT TWO QUARTERS 
    ** Centrum ("add", lowers TP to 26,300 rupees from 28,046 rupees) cuts
volumes and pricing estimates for FY25/FY26 EBITDA by 6.1% each after SHCM
lowered volume guidance and flagged delay in pricing recovery   
    ** CLSA ("hold"; lowers TP to 28,775 rupees from 25,130 rupees) says
meaningful demand uptick likely only at end of this calendar year, could weigh
on prices
    ** Jefferies ("buy", lowers TP to 29,700 rupees from 30,300 rupees) cuts
EBITDA by 7%-15% across FY25-FY27 on weak pricing
    ** Ambit Capital ("sell", raises TP to 21,000 rupees from 19,000 rupees)
says with no visible improvement in realization and increased competition
amongst its north market dealers, co needs clear strategy and better execution
 
  

 (Reporting by Anisha Ajith in Bengaluru)
 ((anisha.ajith@thomsonreuters.com;))