Views on Shree Cement 4QFY2015 Results: Angel Broking

Views of Mr. Shrenik Gujrathi (Sr. Research Analyst - Cement, Angel Broking) on Shree Cement 4QFY2015 Results:

"Shree Cement 4QFY2015 reported numbers were above our estimates. Net sales increased by 4.1% yoy to INR 1724.6cr and was above our estimate of INR 1676.8cr mainly led by higher revenue from power segment. Net sales from cement segment came in at INR 1515.3cr an increase of 1.7% yoy and were in line with our estimate of INR1507cr. Increase in sales number in cement segment is due to new capacity addition during the quarter. However we have seen strong sales number from Power segment as it grew by 25.2% yoy to INR 209.3cr. EBITDA during the quarter declined by 18.7% yoy to INR 356.8cr but was above our estimate of INR 278.7cr. The EBITDA margin also plummeted by 580bp yoy to 20.7% but was above our estimate of 16.6%. Net profit also decline sharply by 44.6% yoy to INR 104.1cr mainly due to higher depreciation and interest cost. We maintain our NEUTRAL rating on the stock."

Shares of SHREE CEMENT LTD. was last trading in BSE at Rs.11450 as compared to the previous close of Rs. 11640.75. The total number of shares traded during the day was 608 in over 283 trades.

The stock hit an intraday high of Rs. 11779.65 and intraday low of 11450. The net turnover during the day was Rs. 7098716.

Source : Equity Bulls

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