Shree Cement's (SRCM) EBITDA recovered 8% YoY in Q3FY18, driven by 8% YoY cement volume growth while power segment delivered EBITDA loss. Rising fuel and freight costs dragged down profits across both the segments. We expect low base effect to turn favourable on YoY basis, in subsequent quarters. While the 4mn MT inorganic acquisition of Union Cement in UAE is at low cost of USD75/MT, weak demand in the GCC region has kept its revenue/EBITDA flat over the past four years and hence we do not see any major positives here. SRCM's valuation remains extremely expensive at 25x/21x/17x its FY18/19/20E EBITDA. We re-iterate SELL with a revised TP of Rs15,650....