Rs 50/Share Dividend Payment: Cement Stock Up 7.81% In 2-Weeks, Gets Buy/Sell Call

Large cap cement sector Shree Cement Ltd shares today declined 3.27% intraday till 12:01 pm on Friday. Board of Directors of Shree Cement on January 31, 2024 approved an interim dividend of Rs 50/- per share for the financial year 2023-24. Shree Cement shares rallied 19% in last 6-months and soared 17% in last 1-year. The company has a market capitalisation of Rs 1,03,371.34 crore. Check details below:

Shree Cement Declares Interim Dividend: As per the BSE filing of the company dated January 31, 2024, "Board declared Interim dividend of Rs. 50/- per equity share of Rs. 10 each for the Financial Year 2023-24, which shall be payable to those shareholders who hold shares on the record date fixed by the Company- i.e. Thursday, 08th February, 2024. The dividend shall be paid from Wednesday, 21 st February, 2024."

Shree Cement Stock Performance & Return: The current market price of Shree Cement shares on BSE is Rs 28,650.00 apiece with intraday fall of 3.27%. The 52-week high price of Shree Cement shares on BSE is Rs 30,710.15 apiece and 52-week low price is Rs 22,601.30 apiece, respectively. Shree Cement shares gained 11% in last 3-months, jumped 13% in last 2-years, and offered return of 82% in last 5-years.

HDFC Securities Assigns Sell Call To Shree Cement: According to the analyst, "We maintain our REDUCE rating on Shree Cement, with a revised SOTP target price of INR 28,700/share, owing to its expensive valuation. Cement volume grew 11% YoY in Q3FY24 and unit EBITDA expanded INR 325/MT QoQ to INR 1,387/MT. Margin expanded on strong pricing and fuel and logistics cost reduction. We estimate its blended unit EBITDA will expand INR 300/MT in FY24E on fuel cost reduction, rising share of green power and brand premiumization."

Axis Securities Assigns Buy Call: According to the analyst, the sector outlook is positive. When it comes to the company outlook & guidance, the company expects cement demand to remain robust and drive its volume growth.It isoptimistic about cement demand growth due to the government's keen and continued focus on infrastructure and housing development, said Axis Securities.

"We roll over our estimate to FY26 and change our rating from HOLD to BUY on the back of strong operating performance. Current target price is Rs31,470/share (Earlier TP: Rs 25,440/share)."

Shree Cement Q3: The company on January 31 declared a surge of 165% year-on-year (YoY) in its standalone net profit to Rs 734 crore for the October-December quarter as against Rs Rs 276.77 crore in the corresponding quarter last year. Its net revenue from operations for the quarter under review surged 20% YoY to Rs 4,901 crore as against Rs 4,069 crore reported in the similar quarter of last year. Total sale volume soared 11% YoY to 8.89 million tonnes for the December quarter from 8.03 million tonnes in the similar quarter last year.

EBIDTA for the September to December quarter rallied 74% YoY to Rs 1,234 crore from Rs 708 crore in the year-ago period and margin expanded by 780 basis points to 25.2% from 17.4% in Q3FY23.

About: The large cap cement company is headquartered in Kolkata India. Shree Cement Ltd came into existence in 1979. It is currently promoted by Calcutta-based industrialists Hari M Bangur. Shree Cement is one of the largest cement producers in Rajasthan (Beawar) and is the largest single location manufacturer in Northern India.

Disclaimer:

The stock has been picked from the brokerage reports of HDFC Securities and Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerages House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.