en.Wedoany.com Reported - India's Shree Cement expects to achieve growth exceeding the industry rate in the fiscal year 2026-27, as the company advances organic expansion and adheres to pricing discipline. According to the company's recent remarks at an investor meeting, the chairman stated that price adjustments have been completed and the sales volume lost during the adjustment period has been recovered. Management has clearly indicated a preference for internal investment over acquisitions to support growth.
The company noted that increased capacity in core markets and demand growth will support stronger sales performance, with the sales volume growth target set at approximately 1.1 times the industry growth rate. As capital expenditure progresses and shareholder dividends increase, cash levels may decline. The board prioritizes increasing dividends over share buybacks to reduce excess cash.
Shree Cement observed that the market is shifting towards a focus on value and affordability rather than pure low-price competition, making demand expansion more closely tied to pricing. Historically, prices have risen by an average of about 3% annually, but due to cost pressures from geopolitical tensions, prices may rise faster this year. However, no substantial improvement in industry profitability is expected. In North India, the company expects new capacity to be absorbed by incremental demand, estimating that approximately 10 million tonnes of additional demand is needed annually.
The next phase of expansion will focus on the northern, western, eastern, and northeastern regions. Existing projects and planned capacity are considered sufficient to meet future demand without the need for acquisitions. Management stated that the company has recovered sales volume while maintaining higher prices and will continue to monitor regional opportunities, including potential investments in West Bengal, pending clarity on industrial policy. The company's current market capitalization is 852,948.9 million rupees, and its share price has fallen by more than 20% over the past year.
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