According to reports from Moneycontrol, Prabhudas Lilladher has downgraded its rating on Shree Cement from 'Accumulate' to 'Hold' with a revised target price of ₹27,770 as of February 07, 2026. The brokerage has also reduced its earlier target price of ₹29,242, citing weaker than expected volume growth performance.
As reported by Moneycontrol, Shree Cement reported disappointing standalone operating performance in Q3FY26 with flattish volume growth of 0.8% YoY. The company's blended net sales realization (NSR) declined 7.1% QoQ due to weakness in cement prices in the East and South regions. Despite these challenges, pure cement NSR stood at ₹4,652 per tonne compared to ₹4,554 per tonne in the previous year, driven by a value over volume strategy.
According to the report, costs were largely constrained during Q3FY26 as power and fuel costs declined 7% QoQ, resulting in EBITDA per tonne of ₹1,049, which was below the previous estimate of ₹1,169. Management indicated that pure cement NSR stood at ₹4,652 per tonne versus ₹4,554 per tonne year-on-year, reflecting the company's strategic focus on value over volume.
As reported by Moneycontrol, with the commissioning of a 3 million tonne per annum (mtpa) unit at Jaitaran and an upcoming 3 mtpa unit at Kodla, Shree Cement remains on track to reach approximately 69 mtpa by FY26. The company is also considering the next phase of expansion to reach 80 mtpa due to lower utilization at current plants.
According to the brokerage's analysis reported by Moneycontrol, Prabhudas Lilladher has cut FY27/28E EBITDA estimates by 6%/7% respectively on weaker than expected volume growth. The revised target price of ₹27,770 values the company at the same 17x EV of September 2027E EBITDA as the previous target, reflecting the adjusted outlook for the cement major.
