How efficiently Shree Cement is able to meet its objective with the acquisition of UAE-based Union Cement in a new geography is difficult to predict. In the December quarter, the firm’s cement volumes grew moderately; realizations were weak and its power and fuel costs continued to surge. Shree Cement has announced the acquisition of a 92.83% stake in Union Cement Co. (UCC), a United Arab Emirates (UAE)-based firm. But how efficiently Shree Cement is able to meet its objective with this acquisition in a new geography is difficult to predict. Meanwhile, the Shree Cement stock trades at a one-year forward price-to-earnings multiple of 35 times.

Source: Mint January 15, 2018 02:37 UTC