Shree Cement - Surprisingly high volume growth - Nomura

Nomura has come out with a research report on Shree Cement Limited after the company came out with its quarterly results and 15 months period ended ended June 30, 2012.

Nomura noted that Shree Cement has surprised by reporting better than its expectations on all accounts. The report noted that the bottomline was boosted by much lower than expected depreciation and tax write-back, allowing the company to post a net profit of Rs.350 crore.

Nomura has put the target price and estimates for Shree Cement under review after the surprise from the company. Nomura expects profitability of cement companies in FY13 to move above the mid-cycle range, as the costs are stable and there is no pressure on cement prices to correct.

Source : Equity Bulls

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