ADVERTISEMENT

Shree Cement - Focused On Improving Margins, Scale: ICICI Securities

Aims to double premium cement share to 15% over 12-15 months.

<div class="paragraphs"><p>(Source: rawpixel.com/Freepik)</p></div>
(Source: rawpixel.com/Freepik)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

ICICI Securities Report

We recently interacted with the management of Shree Cement Ltd. for an update on their business strategy and general industry outlook. Following are the key takeaways:

  1. Shree Cement has formed a technical services team (also comprising civil engineers) which will not only provide expertise to construction activities but also improve sales by close interaction with customers,

  2. it aims to increase premium cement (higher by Rs 25/bag versus normal cement bag) share to 15% from 7% currently,

  3. increase thermal substitution rate to 15% by FY24 from ~3% in FY22,

  4. on track to achieve ~56/80 million tonnes per annum by FY25/FY30 from ~46 mtpa currently.

On industry, the management commented that current demand is robust in their operating markets; however, due to heightened competitive measures, cement players are unable to increase prices. Meanwhile, management expects prices to improve Q1 FY24 onwards.

Click on the attachment to read the full report:

ICICI Securities Shree Cement Update.pdf
Opinion
Cement Price Stable Amid A Respite In Fuel Prices: Motilal Oswal

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.