Upgrade to NEUTRAL with a TP of 17,195 (13.0x Sep-19 EV/EBITDA, US$237/t on FY19 exit capacity) Shree Cement reported strong 2QFY18 numbers (EBITDA/t Rs: 1,116/t, (22.9)/(8.0)% YoY/QoQ, Est 910). Costs surprised on the downside, with P&F; costs (641/t, 25.8/4.7% YoY/QoQ) and other opex ((17.9)/(9.2)% YoY/QoQ) driving the earnings beat. Volumes (4.95 mT, 12.1% YoY), broadly in line with estimates, were strong despite sand availability issues in both Uttar Pradesh and Bihar.