SHREECEM vs ULTRACEMCO
Side-by-side comparison of Shree Cement Ltd. and UltraTech Cement Ltd.. Descriptive only — not investment advice.
Shree Cement Ltd.
Cement
Quality Score: 50/100
UltraTech Cement Ltd.
Cement
Quality Score: 54/100
At a glance
| Metric | SHREECEM | ULTRACEMCO |
|---|---|---|
| Quality Score | 50/100 | 54/100 |
| P/E (trailing) | 52.1 | 43.1 |
| Forward P/E | 35.7 | 27.3 |
| ROE | — | +10.6% |
| Profit margin | +14.5% | +9.2% |
| Debt-to-equity | 38.15 | 29.43 |
| Dividend yield | +0.63% | +0.65% |
| 1Y price return | -14.4% | +2.9% |
| From 52w high | -22.3% | -8.8% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.51 | 1.44 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Shree Cement (₹25,190) trades at a trailing PE of 52.1, the highest among its 6 cement-sector peers, while price has fallen 14.4% over the past 12 months and sits 8% below its 200-day SMA of ₹27,326. The forward PE of 35.7 implies market expectations of meaningful earnings improvement; 5-year earnings CAGR stands at 3.4% and revenue CAGR at 5.2%. Quality score of 39 ranks first among cement peers (range: 27–38), though ROE data is unavailable for a direct return-on-equity comparison.
UltraTech Cement trades at 11,950, below its 200-DMA of 12,071.79, with a trailing PE of 43.1 against a forward PE of 27.3, implying market expectation of near-term earnings growth. The company crossed 200 MTPA cement capacity in April 2026 — the largest outside China — while carrying a D/E of 29.43 with a rising debt trend and an ROE of 10.59% that has not crossed 15% in available history.
Pros
- ✓Highest quality score in the cement peer group at 39, with nearest competitor GRASIM at 38 and the group low at 27 (Dalmia Bharat), suggesting relative operational consistency within the sector.
- ✓Debt trend is classified as falling, and D/E is reported at 38.1; with debt moving in a downward direction, near-term balance sheet pressure from leverage growth appears contained.
- ✓FCF was positive in 3 of the available historical years, indicating the business has demonstrated capacity to generate free cash flow, even if not consistently across all periods.
- ✓Profit margin of 14.5% is a notable absolute figure for the cement sector, which tends to operate on compressed margins due to commodity input costs and pricing competition.
- ✓FCF was positive in 4 of available historical years, indicating the core business has generated cash despite significant capacity expansion outlay.
- ✓Forward PE of 27.3 represents a 37% compression versus the trailing PE of 43.1, reflecting analyst expectations of near-term earnings improvement.
- ✓Analyst rating of 1.44 across 39 analysts (1-5 scale, lower = more constructive) is among the more constructive readings in this coverage universe.
- ✓UltraTech crossed 200 MTPA installed capacity in April 2026 and announced 3 additional grinding units adding 8.7 MTPA, a scale that peers in the 6-stock comparison group have not matched.
Cons
- ✗PE of 52.1 is the highest in the 6-stock cement peer set, commanding a premium 23% above the next-highest peer (GRASIM at 44.2) despite 5-year earnings growth of only 3.4% CAGR — the gap between multiple and earnings growth rate is the widest among peers reviewed.
- ✗Price has declined 14.4% over 12 months and 7.5% over 3 months; the stock trades 8% below its 200-day SMA (₹27,326), with the nearest overhead resistance at ₹25,890 and then ₹27,150.
- ✗ROE has not exceeded 15% in any year captured by the persistence data, and current ROE is unavailable; the company has recorded a consistency score of 41 and quality score of 39, both below what is typically associated with compounding-quality franchises.
- ✗Mean analyst rating of 2.51 across 41 analysts (1–5 scale, lower = more constructive) sits closer to the mid-point of the scale, reflecting a mixed analyst view rather than a concentrated constructive or cautious stance.
- ✗D/E of 29.43 with a rising debt trend is the most significant balance-sheet concern; sustained leverage at this level constrains financial flexibility if cement demand softens.
- ✗ROE of 10.59% has never exceeded 15% in available history, and quality score of 31 ranks lowest among 6 cement peers — capital allocation has not translated into peer-leading returns on equity.
- ✗Current price is below the 200-DMA (12,071.79) and has declined 6.68% over 3 months, with the 52-week drawdown at -8.85% from the high.
- ✗A tax demand of 8.09 billion rupees was reported in early May 2026, introducing a contingent liability whose ultimate resolution and provisioning treatment remain unknown.
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