Shree Cement Ltd.
ISIN: INE070A01015 • Market Cap: ₹87,893 Cr
The 5-Pillar Quality Audit for Shree Cement Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (20.9%), Return on Capital Employed (10.6%), and equity compounding (7.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.07 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (2.4%) and 3Y PAT CAGR (-11.9%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 53.92 vs PEG of 2.67 and Dividend Yield of 0.6%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 62.5%, backed by 24.9% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.07)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Consistent Market Standing (Large Cap)
Established player in the Construction Materials sector with an overall fundamental quality score of 61/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 10.6%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: 2.4%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking SHREECEM against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 61/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Materials Sector Peer Comparison
Compare SHREECEM directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Shree Cement Ltd. (SHREECEM)Current | 61/100 | ₹87,893 Cr | 53.92 | 10.6% | 0.07 | — |
| UltraTech Cement Ltd. (ULTRACEMCO) | 69/100 | ₹3.38 Lakh Cr | 39.55 | 12.1% | 0.30 | View |
| Grasim Industries Ltd. (GRASIM) | 60/100 | ₹2.24 Lakh Cr | 39.36 | 6.6% | 2.19 | View |
| Ambuja Cements Ltd. (AMBUJACEM) | 72/100 | ₹1.01 Lakh Cr | 23.05 | 5.0% | 0.00 | View |
| J.K. Cement Ltd. (JKCEMENT) | 64/100 | ₹40,803 Cr | 43.15 | 13.7% | 0.86 | View |
| Dalmia Bharat Ltd. (DALBHARAT) | 63/100 | ₹35,169 Cr | 37.69 | 7.1% | 0.38 | View |
Frequently Asked Questions: Shree Cement Ltd.
Q:What is the 5-Pillar Fundamental Score for Shree Cement Ltd. (SHREECEM)?
Shree Cement Ltd. has a RupeeTools Fundamental Score of 61/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (62/100), Financial Health (85/100), Growth (28/100), Valuation (48/100), and Ownership Quality (78/100).
Q:Is SHREECEM fundamentally strong for long-term investment?
SHREECEM currently holds a moderate quality rating of 61/100. While it operates in the Construction Materials sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does SHREECEM pass the Coffee Can Investing filter?
No. SHREECEM does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does SHREECEM compare against other Construction Materials peers?
Within India's Construction Materials sector, SHREECEM trades at a P/E of 53.92 and generates an ROCE of 10.6%. Compare its 5-Pillar score of 61/100 against top sector peers like UltraTech Cement Ltd. (69/100), Grasim Industries Ltd. (60/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.