Check Before You Invest : Sagar Cements Ltd

Q: Which industry/sub-sector does Sagar Cements Ltd belong to?

Sagar Cements Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q: Is Sagar Cements Ltd a good quality company?

Sagar Cements Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Sagar Cements Ltd undervalued or overvalued?

Sagar Cements Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 70.77, Historic Median: 33.53. Price to Book, Current: 1.44, Historic Median: 1.77. Price to Sales, Current: 1.34, Historic Median: 1.69. EV to EBITDA, Current: 14.66, Historic Median: 14.44

Q: Is Sagar Cements Ltd a good buy now?

Sagar Cements Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Sagar Cements Ltd?

Sagar Cements Ltd revenue growth is -17.9% for FY-2025, which is below its 5-year CAGR of 13.07%, indicating slower growth.

Q: Gross Profit margin of Sagar Cements Ltd?

Sagar Cements Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.1% for FY-2025, which is below its 5-year median of 9.5%, indicating decreasing margins.

Q: Operating Profit Margin of Sagar Cements Ltd?

Sagar Cements Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.7% for FY-2025, which is below its 5-year median of 9.62% indicating decreasing margins.

Q: Net Profit Margin of Sagar Cements Ltd?

Sagar Cements Ltd Net Profit Margin is -5.46% for FY-2025, is below its 5-year median of 3.74%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 0.1, Historic Median: 9.5. Operating Profit Margin (%), Current: 3.7, Historic Median: 9.62. Net Profit Margin (%), Current: -5.46, Historic Median: 3.74

Q: Return on Asset of Sagar Cements Ltd?

Sagar Cements Ltd Return on Asset is -2.98%, which is below its 5-year historical median of 2.61%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Sagar Cements Ltd?

Sagar Cements Ltd Return on capital employed is -2.65% for FY-2025, which is below its 5-year historical median of 11.73%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Sagar Cements Ltd

Snapshot

Q.1 Which industry/sub-sector does Sagar Cements Ltd belong to?

Sagar Cements Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q.2 Is Sagar Cements Ltd a good quality company?

Sagar Cements Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Sagar Cements Ltd undervalued or overvalued?

Sagar Cements Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	70.77	33.53
Price to Book	1.44	1.77
Price to Sales	1.34	1.69
EV to EBITDA	14.66	14.44

Q.4 Is Sagar Cements Ltd a good buy now?

Sagar Cements Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Sagar Cements Ltd?

Sagar Cements Ltd revenue growth is -17.9% for FY-2025, which is below its 5-year CAGR of 13.07%, indicating slower growth.

Q.2 Gross Profit margin of Sagar Cements Ltd?

Sagar Cements Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.1% for FY-2025, which is below its 5-year median of 9.5%, indicating decreasing margins.

Q.3 Operating Profit Margin of Sagar Cements Ltd?

Sagar Cements Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.7% for FY-2025, which is below its 5-year median of 9.62% indicating decreasing margins.

Q.4 Net Profit Margin of Sagar Cements Ltd?

Sagar Cements Ltd Net Profit Margin is -5.46% for FY-2025, is below its 5-year median of 3.74%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	0.1	9.5
Operating Profit Margin (%)	3.7	9.62
Net Profit Margin (%)	-5.46	3.74

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sagar Cements Ltd?

Sagar Cements Ltd Return on Asset is -2.98%, which is below its 5-year historical median of 2.61%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sagar Cements Ltd?

Sagar Cements Ltd Return on capital employed is -2.65% for FY-2025, which is below its 5-year historical median of 11.73%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Sagar Cements Ltd?

Sagar Cements Ltd Return on equity is -5.15% for FY-2025, which is below its 5-year historical median of 4.94%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sagar Cements Ltd?

Sagar Cements Ltd Cash conversion cycle is -9 days, in line with its 5-year historical median of -9 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.62	0.79
ROE (%)	-5.15	4.94
ROCE (%)	-2.65	11.73
Cash Conversion Cycle	-9 days	-9 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Sagar Cements Ltd?

Sagar Cements Ltd Debt-to-Equity ratio is 0.30, which is lower the industry average of 0.36, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sagar Cements Ltd?

Sagar Cements Ltd Debt to cash flow from operations is 9.34, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sagar Cements Ltd?

Q.1 Promoter shareholding and pledge status of Sagar Cements Ltd?

Promoters hold 48.33% of the Sagar Cements Ltd, with 29.99% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sagar Cements Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sagar Cements Ltd vs industry peers?

Sagar Cements Ltd revenue CAGR is 13.07%, compared to the industry median CAGR of 5.89%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-17.9	5.9
Gross Profit Growth (%)	-98.8	-0.6
Operating Profit Growth (%)	-68.9	-2.5
Net Profit Growth (%)	-374.2	-8.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.62	0.82
ROE (%)	-5.15	7.28
ROCE (%)	-2.65	9.38
Cash Conversion Cycle (days)	-8.68	17

Valuation & price assessment

Q.1 Stock return of Sagar Cements Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	3.6%	0.5%	-2.9%	-23.3%

Q.2 Valuation ratios of Sagar Cements Ltd vs historical?

The current P/E ratio of 70.77 is higher than its historical median of 33.53, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	70.77	33.53	22.88
Price to Book	1.44	1.77	1.92
Price to Sales	1.34	1.69	1.41
EV to EBITDA	14.66	14.44	11.61

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Check Before You Invest : Sagar Cements Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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