Shree Cement Ltd.
Cement · NSE
52-week range
₹22,550 – ₹32,398
From 52w high
-21.5%
RSI (14)
57.8
vs SMA 50 / 200
↑ 50 · ↓ 200
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.
- ✓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.
- ✗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.
- ·ICICI Securities published a note on SHREECEM with a stated price target of ₹26,200 — approximately 4% above the current price of ₹25,190 — representing a narrow upside estimate relative to the stock's 52-week high drawdown of 22.3%.
- ·Five of the seven recent news items are near-identical open-interest surge alerts from Markets Mojo across a single day (May 7, 2026), contributing to the entirely neutral news sentiment reading and limiting the informational value of the current news cycle.
- ·The 22.3% drawdown from the 52-week high, combined with the stock remaining below its 200-day SMA for an extended period, frames the current price (₹25,190) against identified support levels at ₹23,800, ₹22,855, and ₹22,550.
- ?What structural factors — pricing power, cost efficiency, or capacity utilization — underpin a PE premium of 52.1 relative to cement peers trading at 12–44x, and whether those factors are reflected in the 3.4% earnings CAGR?
- ?Given that ROE data is unavailable and the persistence record shows zero years above 15% ROE, what does return-on-capital-employed look like across business cycles, and how does it compare to the cost of capital?
- ?The debt trend is classified as falling, but what is the absolute debt level and interest coverage ratio, and how would a prolonged period of subdued revenue growth (5.2% 5-year CAGR) affect debt-service capacity?
- ?Does the forward PE of 35.7 — implying a material step-up in earnings — reflect analyst consensus on a specific margin recovery catalyst (e.g., coal cost normalization, new capacity ramp), and what is the track record of such estimates materializing within the projected timeline?
PE
52.1
Forward PE
35.7
ROE
—
Profit margin
+14.5%
D/E
38.15
Dividend yield
+0.6%
Quality score
39/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
3/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.