Low Production Cost Keeps Shree Cem Ahead of Peers
Company’s presence in key growth markets and its decision to be selective about market expansion have aided its growth journey
Securities, a brokerage, mentioned in a report that the expected growth in the company’s expected cash earnings per share (EPS) at above 25% between FY17 and FY19 is higher than peers’ average.
Considering FY19 estimated operating profit before de preciation (EBITDA) and the Thursday’s stock price of Rs 17,384.9, Shree’s enterprise value (EV) is 14.5 times EBITDA. This may appear expensive when compared with its peers who are trading within EV/EBITDA range of 11-14. But the premium is justified given the company’s cost advantage and dominant presence in the key markets.