Shree Cement share price fell over 4% on Thursday after the company declared a 13.5% fall in consolidated net profit at Rs 330.35 crore for April-June quarter of FY21 against a profit of Rs 382 crore in the same period last year.
Following the earnings update, Shree Cements share price fell 4.71% to the intraday low of Rs 21,335.4 on BSE against the earlier close of Rs 22,388.95. The stock also hit an intraday high of Rs 22,000 during today's session, also its opening value.
Shares of Shree Cements have fallen over 0.36% in one week and 3.4% in one month. Shree Cements stock stands higher than 100 and 200-day but lower than 5, 20 and 50-day moving averages. Shree Cements stock has fallen after 2 days of consecutive gain.
Market cap of the firm stood at Rs 77,573.61 crore as of today's session.
"During the quarter ended 30th June, 2020, company's Indian operations were partially affected due to lockdown announced on account of Covid -19 pandemic by state and central government. The company has taken into account the possible impact of Covid-19 in preparation of the financial results," the company said in a statement on Monday.
The cement manufacturer reported 22% YoY drop in earnings before interest, tax, depreciation and amortization (EBITDA) to around Rs 700 crore. Total expenses also fell by 25% at Rs 2,163 crore.
Shree Cements' revenue was down by around 24% at Rs 2,480 crore in Q1 FY21 as against Rs 3,302 crore during Q1 FY20.
On Shree Cement stock price, Jefferies maintained 'underperform' call with a target of Rs 18,700. It added that Shree Cement's results were a bit different from peers as volumes were higher than forecast. Jefferies said," Strong volume growth was partially led by a favourable regional mix. We believe the company has managed to grow ahead of the market. Efforts were visible as lead distance rose but reflects growth mindset."
Meanwhile, CLSA also maintained sell call on the stock with a target of Rs 20,300. The brokerage said,"Shree Cement's results indicate the company may have to forego pricing to maintain higher growth. Unlike other cement companies, there was no surprise on profitability."
CLSA added that the results indicate the company may have to forego pricing to maintain higher growth.
ICICI Securities, on the other hand, gave 'Buy' call on the stock, with a target price of Rs 25,800. The brokerage said it has raised FY21E-FY22E EBITDA by 3-7% and EPS by 22-32% factoring higher volumes, owing to lower depreciation and higher other income.
"Market share gains continues for SRCM with volumes declining 18% YoY-better than industry decline of ~34%; while still sustaining blended EBITDA/te of Rs1,421/te," the brokerage added.