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: 55/100
UltraTech Cement Ltd.
Cement
Quality Score: 42/100
At a glance
| Metric | SHREECEM | ULTRACEMCO |
|---|---|---|
| Quality Score | 55/100 | 42/100 |
| P/E (trailing) | 51.9 | 40.4 |
| Forward P/E | 35.4 | 25.7 |
| ROE | — | +10.6% |
| Profit margin | +14.5% | +9.2% |
| Debt-to-equity | 38.15 | 29.43 |
| Dividend yield | +0.63% | +0.67% |
| 1Y price return | -18.6% | -1.0% |
| From 52w high | -22.6% | -14.3% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.49 | — |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Shree Cement trades at ₹25,060, carrying a trailing PE of 51.9 — the highest among its 6-peer cement group — against 5-year earnings growth of 3.4% CAGR and revenue growth of 5.2% CAGR. The price is 6.9% below the 200-day SMA of ₹26,906, and has declined 18.64% over the past 12 months from a 52-week peak, with RSI at 52 in neutral territory. The quality score of 39 ranks first among cement peers (range 25–32), while the debt-to-equity of 38.1 and a profit margin of 14.5% reflect the capital-intensive nature of the sector.
UltraTech Cement (ULTRACEMCO) is India's largest cement producer by capacity, currently priced at ₹11,232 — below both its 50-DMA (₹11,508) and 200-DMA (₹12,016) — with a trailing PE of 40.4, ROE of 10.59%, and a 14.32% drawdown from its 52-week high. Revenue has grown at a 3% five-year CAGR while the debt trend is rising and five-year earnings growth data is unavailable. Analyst coverage spans 39 analysts with a mean rating of 1.16 on a 1–5 scale (lower = more constructive), alongside a forward PE of 25.7 that embeds significant implied earnings growth relative to trailing results.
Pros
- ✓Highest quality score (39) among 6 cement peers (GRASIM 25, ULTRACEMCO 31, AMBUJACEM 32, ACC 32, DALBHARAT 27), suggesting above-peer operational and financial discipline within the sector.
- ✓FCF was positive in 3 of available tracked years, and the debt trend is reported as falling — indicating some improvement in balance sheet leverage direction despite the capital-intensive business model.
- ✓Q4 FY26 PAT of ₹532 crore beat street estimates on a reported basis (Zee Business, May 2026), with sales growth of 8% in the quarter — the most recent quarterly data point exceeded consensus expectations.
- ✓Forward PE of 35.4 represents a 32% compression from the trailing PE of 51.9, reflecting analyst earnings growth expectations embedded in consensus estimates over the next 12 months.
- ✓FCF-positive in 4 of the available fiscal years, indicating the business has generated cash above capital expenditures in most periods despite ongoing capacity expansion.
- ✓ROE of 10.59% ranks second among the 5 peers with available ROE data (GRASIM 6.29%, AMBUJACEM 8.31%, DALBHARAT 6.50%, ACC 10.93%), reflecting relatively stronger capital return within the peer set.
- ✓Trailing PE of 40.4 compresses to a forward PE of 25.7 — a 37% contraction — suggesting the analyst consensus is pricing in meaningful near-term earnings improvement, which if realised would reduce the valuation premium versus peers like Ambuja (PE 22.9) and ACC (PE 12.0).
- ✓Capacity expansion narrative persists in recent coverage, consistent with UltraTech's multi-year strategy of gaining market share in India's infrastructure-driven cement demand cycle.
Cons
- ✗Trailing PE of 51.9 is the highest in the 6-peer cement group, a 28% premium to the next-highest peer (Grasim at 42.5) and 4.3x the lowest (ACC at 12.0), while 5-year earnings CAGR of 3.4% is below sector median levels.
- ✗ROE data is unavailable for the reported period; the persistence tracker shows 0 years with ROE above 15%, and reporting peers show ROE ranging 6.3%–10.9% — no evidence of above-sector capital efficiency to support the valuation gap.
- ✗Price has declined 18.64% over 12 months and 6.72% over 3 months; the stock sits 6.9% below its 200-day SMA (₹26,906) with a 52-week drawdown of 22.65% from the annual high.
- ✗Quality score of 39 and consistency score of 41 are sector-leading but remain below levels typically associated with businesses generating sustained double-digit ROE or wide-moat economics; the scores reflect relative, not absolute, quality.
- ✗ROE has not exceeded 15% in any year of available history and the quality score of 31 ranks 4th of 6 cement peers, indicating capital efficiency below what the scale and market position of the company might imply.
- ✗The stock has declined 13.87% over 3 months and 1.03% over 12 months, trading below both its 50-DMA and 200-DMA for an extended period, with RSI at 39.72 approaching oversold territory.
- ✗Debt trend is rising and the D/E figure of 29.43 warrants scrutiny; five-year earnings growth data is absent from the available dataset, leaving the earnings-growth thesis supporting the forward PE of 25.7 unverifiable from this data.
- ✗A ₹808.78 crore income-tax demand for Assessment Year 2023-24 has been contested by the company via appeal, representing an unresolved contingent liability that could affect reported earnings if the demand is upheld.
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