CARE reaffirms rating for Shree Cement’s proposed NCDs; stock rises

Shares of Shree Cement jumped nearly 1 percent in early trade on September 14, post the reaffirming of the rating to the proposed Non-Convertible Debentures (NCDs) of Rs 700 crores.

At 11:11 am the Shree Cement stock was trading 0.56 percent higher at Rs 26,384 on NSE.

CARE Ratings Limited has confirmed that Shree Cement’s proposed Non-Convertible Debentures (NCDs) worth Rs 700 crore are rated ‘AAA’ with a stable outlook. The company informed the exchanges according to a BSE filing on September 13.

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Brokerage Views

Motilal Oswal recommended ‘Neutral’ rating on Shree Cement with a target price of Rs 24,200 in its research report dated July 27, 2023.

Brokerage firm HSBC has given Shree Cement a “Hold” rating and set a target price of Rs 22,000 per share in a recent report. The report further stated that, Shree Cement exceeded revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) expectations due to the impressive performance of its power business. The company has also announced new capital expenditure (capex) plans in both North and South India and is determined to enhance its utilization rates.

Stock Performance

Shree Cement stock has given a return of 3.87 percent over the last six months. The benchmark Nifty50 index has surged by 17.76 percent over the same duration.

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