With Government’s thrust on infrastructure development, leadership in North with high entry barriers, strong brand pull coupled with robust distribution network, retail-centric business model, raw material security with cost leadership, diversifying growth in eastern and southern market and enhancing return ratios, augurs well for Shree. Therefore, we believe, its premium multiple is expected to sustain, which can be supported by thin liquidity and meagre non-institutional holdings. We have valued the stock on the basis of 15x of FY21E EBITDA (equivalent to replacement cost of ~USD 180/tn). Currently at Rs 18,846, we feel that the stock is adequately priced, based on current fundamentals. Pending triggers for a fresh re-rating or a stronger conviction, we are Neutralon the stock.