We remain cautious, only for valuations (16.6/13.1x FY19/20 EV/EBITDA) and maintain NEUTRAL with a TP of 17,195 (13.5x Dec-19 EV/EBITDA) as more details from the merger emerge. Shree Cement (SRCM) reported an EBITDA of Rs 1,004/t (vs estimate of Rs 1,099/t, 2.9/-10% YoY/QoQ). Costs surprised on the downside, with P&F; (Rs 746/t, 39.9/% YoY/QoQ) and freight costs (Rs 1,117/t, 30.5/3.7% YoY/QoQ) drawing earnings down. SRCM also announced an acquisition of UAE-based Union Cement (3.3/4.0 MTPA clinker/cement capacity). The acquisition marks SRCMs first steps into the global market. The company has been valued at an EV of USD 305.24mn (EV/t of USD 76), and the acquisition will be completed in 1HFY19.