Anand Rathi has buy call on Sagar Cements with a target price of Rs 305. The current market price of is Rs 219.45. Time period given by analyst is one year when . price can reach defined target.
Sagar Cements Ltd., incorporated in the year 1981, is a Small Cap company (having a market cap of Rs 2575.60 Crore) operating in Cement sector.
Sagar Cements Ltd. key Products/Revenue Segments include Cement, Other Operating Revenue, Power and Scrap for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 505.89 Crore, up 50.76 % from last quarter Total Income of Rs 335.57 Crore and up 20.63 % from last year same quarter Total Income of Rs 419.36 Crore. Company reported net profit after tax of Rs -19.15 Crore in latest quarter.
Investment Rationale
Taking its capacity to 8.25m tonnes, Sagar Cements commissioned its MP and Odisha plants recently. To fund capacity planned to be added inorganically, it has raised debt (Rs5bn) and diluted equity (Rs3.5bn). While near-term cost pressures persist, sales volume would grow chiefly from the recently commissioned units. Being cost-efficient, Sagar with its strategic diversification to central and eastern markets and strong operations in southern markets is set to benefit. The brokerage retains Buy rating on the stock, with a lower target of Rs.305.
Promoter/FII Holdings
Promoters held 50.28 per cent stake in the company as of 31-Mar-2022, while FIIs owned 5.24 per cent, DIIs 8.87 per cent.
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