Why Is Antique Bullish on Shree Cement’s Volume Recovery and Profitability?
Shree Cement (SRCM) is one of India’s leading cement manufacturers, known for its cost-efficient operations, market presence in northern and eastern India, and consistently strong profitability. The company has demonstrated an ability to maintain industry-leading EBITDA per ton, while its subsidiaries are beginning to make a meaningful contribution to consolidated performance. Antique has reiterated its Buy recommendation on Shree Cement with a target price of ₹33,500, citing strong volume recovery, market leadership, and sustainable profitability as the key drivers.
Volume Growth Recovery – A Primary Catalyst
Subsidiary Contributions Rising
Profitability Leadership in Regional Markets
EBITDA/Ton Outlook
- FY25: ₹1,079
- FY26E: ₹1,342
- FY27E: ₹1,384
- FY28E: ₹1,421
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Valuation Perspective
Risks to Monitor
- Slower-than-expected recovery in cement demand.
- Rising input costs impacting margins.
- Competitive pressure in the east and south markets.
- Policy changes in infrastructure and housing sectors.
Investor Takeaway
Antique’s bullish stance on Shree Cement is based on improving volumes, growing subsidiary contributions, and industry-leading profitability. With strong cost efficiency and realizations supporting EBITDA growth, SRCM remains a high-quality pick in the cement sector. While valuations are near historical averages, the company’s structural advantages provide confidence in sustained long-term performance.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.











