Most Expensive Cement Stock On BSE, NSE Is Hot! Not Ultratech Or Ambuja, But This Company Rated To Accumulate

A cement stock that trades a little over Rs 26,000, is the most expensive cement stock on BSE and NSE. Despite being highly valued, the large-cap is rated to ACCUMULATE for a target price that is near Rs 30,000.

Its neither giants like Ultratech Cement or Adani Group-backed ACC or Ambuja Cement. But instead Shree Cement! PL Capital analyst has recommended ACCUMULATE rating on Shree Cement.

According to Tushar Chaudhari, Research Analyst, PL Capital, Shree Cement management highlighted good traction in non-trade segment in the past 2 weeks and expects pricing to improve. However, in trade, demand has not yet picked up pace as expected (on GST rationalization), and price recovery would be gradual from Q4FY26.

With over 40mtpa capacities expected to get commissioned in the Northern region over the next 2 years, the management reiterated its focus on achieving efficiencies across units. This would have some impact on the Northern market share (pan-India market share is 9% and North is 21-22%), which would be compensated by improving volumes in rest of India and shift in its year-old 'value over volume' strategy. SRCM reiterated continued focus on efficiencies and delivery of EBITDA/t.

Since inception, SRCM has been a pioneer in achieving cost efficiencies. With the industry having replicated SRCM's strategies, the latter may have to recalibrate its approach by capitalizing on own strengths and drive volume growth.

That being said, Chaudhari added, "Over the last few quarters, SRCM has lost market share, a cause of concern, and regaining volume momentum amid rising competitive intensity will be the key for SRCM to outperform. We cut our FY27/28E EBITDA estimates by ~4%/6% on lower pricing assumptions. The stock is trading at EV of 15.6x/13.8x of FY27/FY28E EBITDA. Maintain 'Accumulate' with revised TP of Rs29,850 (earlier Rs31,769) valuing at 17x EV of Sep'27E EBITDA.​"

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