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Shree Cement, India's third-largest cement maker by market capitalisation, reported on Tuesday a first-quarter profit that missed estimates due to lower demand and prices.

The company said its profit for the quarter ended June 30 stood at 3.18 billion rupees ($37.9 million), missing analysts' estimates of 5.25 billion rupees, per LSEG data.

Its revenue from operations fell 2% to 48.35 billion rupees, also missing estimates.

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KEY CONTEXT

General elections in India, coupled with extreme heat conditions during April to June restricted construction activities, denting sales for cement makers who have been resorting to price cuts amid rising competition.

While Shree Cement's sales volumes rose 8% to 9.64 million tonnes in the quarter, weak pricing led to lower realisation.

Peer UltraTech Cement also reported first-quarter profit and revenue below estimates.

PEER COMPARISON

Valuation (next 12 Estimates (next 12 Analysts' sentiment

months) months)

RIC PE EV/EBITDA Revenue Profit Mean # of Stock to Div

growth % growth % rating* analysts price yield

target** (%)

Shree Cement 34.30 17.39 8.90 14.95 Buy 16 0.96 0.38

UltraTech Cement 42.40 20.82 9.85 20.11 Buy 34 1.01 0.60

Ambuja Cements 33.92 18.42 8.45 21.56 Buy 26 0.94 0.31

ACC 20.81 11.16 5.98 3.11 Buy 19 0.85 0.31

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

--$1 = 83.9400 Indian rupees