Morgan Stanley ‘overweight’ on Shree Cements despite 44% drop in Q3 profit, here’s why

Shree Cements’ revenue from operation was up 15 percent at Rs 4,069 crore during the October-December 2022 period against Rs 3,552 crore in the same quarter of the previous year

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Shree Cements share price was trading 2 percent lower in the morning session on February 9, a day after the cement maker reported a 44 percent fall in third-quarter profit.

Global research and broking firm Morgan Stanley, however, still has an “overweight” rating on the stock with the target at Rs 26,000 a share.

On February 8, the Kolkata-based company reported a 43.7 percent year-on-year drop in standalone profit after tax at Rs 277 crore, as high input and fuel costs triggered by the Russia-Ukraine war weighed on the cement sector. The company had reported a net profit of Rs 492 crore in the same quarter of the previous fiscal year.

Its revenue from operation, however, was up 15 percent YoY at Rs 4,069 crore in the October-December 2022 period from Rs 3,552 crore.