Shree Cement Q1 profit falls 37%: Why analysts remain positive on the stock

The company's cement sales volumes at 6.99 million tonnes (MT) grew 18.7 per cent year-on-year (8.55 per cent sequentially).

After a significant improvement in profitability reported by ACC and Ambuja Cements, and with UltraTech maintaining the metric despite weak realisations and cost pressures, Shree Cement’s reported numbers — below expectations — initially stumped the Street. 

But, a detailed look suggests that business performance was in line with estimates and prospects remain intact, which is why analysts remain positive on the stock that recovered as the day closed.

Reported net profit at Rs 2.79 billion, down about 36.5 per cent year-on-year, missed Street expectations by about 20 per cent as the cement segment’s profits plunged 80 per cent year-on-year.

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