cement
Shree Cement
SHREECEM · Nifty 50
₹24,970
Price 2026-06-17
At a Glance
Fundamental
95/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Shree Cement scores 95/100 on fundamentals (strong). Shree Cement: BROAD EXPANSION regime.
Fundamental Score: 95/100 · STRONG · 3 signals detected
DuPont Analysis
ROE 8.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 8.63% is modest margin-driven and stable. Net margin of 9.2% × asset turnover of 0.69x × leverage of 1.4x.
What This Means
Net margin of 9.2% means the company keeps ₹9.2 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.69x means the company efficiently uses its assets to generate revenue. Leverage of 1.4x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
66.6%
Operating
13.0%
Net
9.2%
Gross margin 66.6% → operating margin 13.0% → net margin 9.2%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
STRONGCash flow covers net income 1.9x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
COMFORTABLEInterest covered 14.0x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.3x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 8.7% — moderate. Generating cash after investments.
Peer Comparison
Shree Cement is compared against 5 peers in the cement sector.
Key Watchpoints
Breaks above ₹26218 (+5%)
Trend reversal confirmation
Breaks below ₹23722 (-5%)
Further downside risk
Cement sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Governance structure concerns. Independent director representation may be weak.
High revenue multiple. Market pricing in significant growth or margins expansion.
Strong insider alignment. Promoters have significant skin in the game.
Growth available at reasonable price. Favourable risk-reward.
⚠️ 1 critical + 2 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes