InvestorQ : How do you view the latest results of Shree Cements and how will that impact the stock price?
Priyanka N made post

How do you view the latest results of Shree Cements and how will that impact the stock price?

Answer
user profile image
diksha shah answered.
2 months ago


With the lockdown, most cement companies have been under pressure and Shree Cements was no exception. It reported 13.5% drop in net profits at Rs.350 crore for the Jun-20 quarter. The lockdown impacted production schedules and also supply chains.

For the Jun-20 quarter, the total revenues were down 24% at Rs.2480 crore. However, it must be said that the profit impact was mitigated due to 25% fall in total expenses too. Shree Cements is the second most valuable cement company in India after Ultratech.

Before taking any investment call, you must put the past rally in context. Most of the rebound already is priced in. Hence, considering its rich valuations, it is doubtful if the rich valuations can be sustained in the coming months. It is better to be cautious.