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Shree Cement Ltd.’s Q4 FY22 earnings were below our estimate due to lower realisation (2% lower than our estimate).
Ebitda stood at Rs 9.1 billion (estimate: Rs 9.9 billion) and Ebitda/tonne came in at Rs 1,134 (estimate: Rs 1,249).
Adjusted profit was in line at Rs 5.5 billion.
Shree Cement commenced commercial production at its clinker unit (line-III) in Chhattisgarh, with a capacity of 12,000 tonnes per day (3.96 million tonnes per annum) in March 2022.
We reduce our FY23/FY24 earnings per share estimate by 7%/3% on higher costs. The stock trades at 21x/16.2x FY23/FY24 enterprise value/Ebitda, which leaves little room for any disappointment.
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