Nomura has upgraded Shree Cement to ‘Buy’ from ‘Neutral’ and raised its target price to ₹34,000 from ₹30,000, citing improved utilization in the company’s core markets of Northern and Eastern India. These regions contribute over 80% of the company’s volumes and have shown resilient pricing—up 4% quarter-on-quarter, versus a 2% increase at the pan-India level.
The brokerage now expects Shree Cement’s volumes to reach 41MT and 46MT in FY26 and FY27, respectively. EBITDA for FY26 and FY27 has been raised by 9% and 15% to ₹49 billion and ₹65 billion, respectively.
Nomura believes the company is set to outperform the industry on volume growth, with EBITDA/t in Q4FY25 expected to exceed ₹1,300, driven by better realizations and fuel cost benefits.
