Shree Cement

SHREECEM (₹25,100) exhibits a sharp divergence between short-term momentum and longer-term structure. On the daily chart, price is firmly above all key moving averages and the Supertrend, supported by an established trend (ADX 27.29). This aligns with recent positive anomalies, including a high-severity upward gap on November 5 (+3.0%) and a monthly Morning Star formation active as of November 6. However, this bullish daily setup conflicts with the monthly horizon, where price remains below all supplied moving averages and the Supertrend, indicating a weak underlying trend (ADX 16.12). The stock is trading near the upper end of its 20-day range (+99.4%) but sits in the middle of its yearly range (+47.7%). With annualized volatility at +22.3% and a current drawdown of -22.4%, the immediate risk lies in resistance clustering just above ₹25,170. A sustained break above ₹25,445 would be required to validate further upside, while a failure to hold above the pivot support at ₹24,845 could signal a reversion toward the broader monthly downtrend.

Shree Cement reported consolidated net profit of ₹1,108.33 crore for Q2 FY27 (ended September 30, 2026), up from ₹770.83 crore in the prior quarter, alongside India sales volumes of 9.31 million tons (+18% year-on-year). Management highlighted a premium product mix of 29%, ready-mix concrete revenue growth of 182%, and an annualized volume target of 40–41 million tons for FY27. Operationally, Union Cement Company commissioned a new 3 million tonne per annum mill in the UAE in September 2026, raising total UAE capacity to 7 million tonnes, while the Meghalaya greenfield plant remains on track for March 31, 2028. On October 26, 2026, the company applied to the NSE and BSE to reclassify Ms. Riya Puja Jain from the Promoter Group to the Public category under SEBI Regulation 31A; this application is pending approval. As of November 6, 2026, the stock closed at ₹25,100 with a market capitalization of approximately ₹89,823 crore.

Shree Cement reported consolidated revenue of ₹5,896.51 crore and a profit of ₹263.46 crore for the quarter ended September 30, 2026. While domestic sales volumes grew 18% year-on-year to 9.31 million tons, per-ton EBITDA declined 8% due to elevated fuel prices, resulting in only a 4% rise in consolidated EBITDA to ₹1,016 crores. The company also commissioned a new 3 million tonne per annum cement mill in the UAE, bringing total regional capacity to 7 million tonnes. Separately, the company applied to stock exchanges to reclassify Ms. Riya Puja Jain from the Promoter Group to the Public category under SEBI regulations; this application is pending regulatory no-objection.

Shree Cement’s Q2 FY2026-27 results reveal a sharp sequential deceleration in profitability despite robust top-line growth. Revenue from operations declined to ₹5,897 crore from ₹6,233 crore in Q1, while net profit fell significantly to ₹263 crore from ₹531 crore. This contraction occurred even as operating profit remained elevated at ₹1,016 crore for the quarter (Sep 2026), suggesting margin pressure or one-off items impacting the bottom line. The TTM net profit of ₹1,590 crore and EPS of ₹438.86 reflect a mixed picture: while sales grew 14% TTM, compounded profit growth has turned negative (-8% TTM). Balance sheet expansion is evident with total assets rising to ₹32,651 crore as of Sep 2026, supported by increased borrowings (₹2,179 crore) and investments (₹9,722 crore). However, working capital days have turned negative (-10 days), indicating efficient cash conversion relative to payables, though inventory days remain high at 469 days. ROCE improved to 10% from 7% in Mar 2026, yet remains below historical levels. Promoter holding is stable at 62.56%, while DIIs increased their stake to 16.49%.

As of November 6, 2026, Shree Cement (NSE) presents a mixed technical landscape that warrants caution for investors monitoring near-term volatility and medium-term trend integrity. While the daily chart shows a bullish super-trend direction with strong upward momentum indicators (ADX 14 at 27.29), this is contradicted by bearish signals on both weekly and monthly timeframes. The monthly super-trend remains bearish, and the weekly trend is also bearish, suggesting that the recent daily strength may be a short-term bounce within a broader downtrend.

Performance metrics highlight significant downside pressure over longer horizons. The stock has declined 8.6% over the past year and 6.5% year-to-date. More critically, the current drawdown stands at -22.4%, approaching the historical maximum drawdown of -33.2%. This indicates substantial capital erosion for holders entering during previous highs. Volatility remains elevated, with annualized volatility at +22.3% and an Average True Range (ATR) percentage of 2.39%, implying continued price instability.

Price action faces immediate resistance just above current levels, with the nearest resistance level at ₹25,170 (0.28% above the closing price of ₹25,100). However, support levels are closer in percentage terms on the downside, with pivot support at ₹24,845 (-1.02%) and low support at ₹24,776 (-1.29%). The proximity of these support levels relative to resistance suggests limited upside buffer if the broader bearish monthly/weekly trends resume.