Buy Shree Cements, target price Rs 31,200: Emkay Global

Emkay Global has buy call on Shree Cements with a target price of Rs 31200. The current market price of Shree Cements Ltd. is Rs 31124.15.

Time period given by analyst is one year when Shree Cements Ltd. price can reach defined target.

Shree Cements Ltd., incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 111678.21 Crore) operating in Cement sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 3775.94 Crore, down -12.86 % from last quarter Total Income of Rs 4333.37 Crore and up 44.86 % from last year same quarter Total Income of Rs 2606.58 Crore. Company reported net profit after tax of Rs 630.89 Crore in latest quarter.

Investment Rationale
The brokerage has a Buy rating on the stock with a DCF-derived TP of Rs31,200 (Sep’22E), implying 18x 1-year forward EV/E.

Promoter/FII Holdings
Promoters held 62.6 per cent stake in the company as of June 30, 2020, while FIIs held 13.2 per cent, DIIs 9.9 per cent and public and others 14.3 per cent.