Shree Cement (SHREECEM)

FairStock Score: 49/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wearing Buffett’s glasses and Graham’s margin-of-safety lens. Shree Cement is a large cement maker (₹89,462 Cr market cap) with a 62.56% promoter stake, debt/equity of only 0.38, Altman Z-score 3.98, and Piotroski F-score 8/9. It generated ₹1,194 Cr free cash flow. Those are respectable signs of a durable franchise and balance-sheet discipline. Sales grew 13.11% in the latest period and five-year revenue CAGR is 8.43%, so the business is not shrinking. But the investment case breaks down at price. At ₹24,795, it trades at 54.94x earnings and 9.71x book, with a PEG of 11.07 and EV/EBITDA of 22.57. Graham’s number is ₹8,165.66, giving a negative margin of safety of -219.32%; DCF intrinsic value is ₹17,720.73, still far below market. ROE of 8.32% and ROCE of 6.71% are not high enough to suggest a wide moat or exceptional capital allocation. Profit declined 29.19%, and latest quarterly net profit was only ₹268 Cr on sales of ₹4,801 Cr. Cement is cyclical and commodity-like, so these returns matter. Dividend yield is just 0.55%, so shareholders are paying a premium for growth that the profit line has not delivered recently. FairStock Score 49/100 confirms mixed picture. My conclusion: good balance sheet, cyclical business, but not a bargain. I would wait for price closer to DCF value or for ROCE/ROE and profits to recover before calling it a Buffett-style compounder.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer