Cement Stock's Record Date For Rs 45/Share Dividend Is 3 Days Away, ICICI Direct Recommends Buy

Board of large cap cement sector stock, Shree Cements Ltd declared an interim dividend of Rs 45/equity share for the financial year 2022-23. The company fixed February 16, 2023 as the record date. Meanwhile, ICICI Direct has recommended investors to buy Shree Cements Ltd with a target price of Rs 28,500 apiece. If you buy Shree Cements Ltd, you can get potential return of 17%. Check details below:

1. Shree Cements Ltd Share Performance & Return

The last trading price of Shree Cements Ltd is Rs 24,437.40 apiece with intraday gain of 2% on BSE. The stock's 52-week high is Rs 26,332.90 apiece and 52-week low is Rs 17,900.00 apiece, respectively.

The company has a market capitalisation of Rs 88,171.97 crore. The stock gave a return of 7% in last 3-months and 15% return in last 6-months. It declined a little over 1% in last 1-year. The stock gave a return of 44% in last 5-years.

2. Shree Cements Declares Solid Dividend

According to the BSE filing of the company, "Board declared Interim dividend of Rs. 45/- per equity share of Rs. 10 each for the Financial Year 2022-23, which shall be payable to those shareholders who hold shares on the record date fixed by the Company i.e. Thursday, 16th February, 2023."

3. Valuation

According to ICICI Direct, "Cost leadership, strong presence in north & east along with robust balance sheet has provided it an edge over its competitors. With expected revenue CAGR of 15.8% and RoIC of ~18%, we remain positive on the company and maintain our BUY rating on the stock. We value Shree at Rs 28,500 i.e. 22x FY24E EV/EBITDA."

4. About Shree Cements Ltd

Shree is the third largest cement group in India with domestic cement capacity of 46.4 MT as of FY22. In the past four years, it has diversified itself from being a 100% north player to a player with capacities now in Rajasthan, Uttarakhand, Bihar, Chhattisgarh, Haryana, Uttar Pradesh, Karnataka and Odisha. It also has a presence in the UAE with integrated cement capacity of 4 MT and 3.3 MT clinker (located near port in Ras-Al-Khaimah).

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.