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Check Before You Invest : Sagar Cements Ltd

BSE: 502090 NSE: SAGCEM ISIN: INE229C01021
  |   Sector:  Construction & Infrastructure   |   Industry:  Cement & Construction Materials

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 10 year financial track record.
Q.3 Is Sagar Cements Ltd undervalued or overvalued?
Sagar Cements Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
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

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 13.1% , 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 with its 5 year median of 3.74%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 0.1 9.5
Operating Profit Margin 3.7 9.62
Net Profit Margin -5.46 3.74
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 Equity (ROE) of Sagar Cements Ltd?
Sagar Cements Ltd Return on equity is -5.15% for FY-2025 , which is below its historical median of 4.94%, indicating the business is making worse use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Sagar Cements Ltd?
Sagar Cements Ltd Cash conversion cycle is -9 days, below its historical median of -9 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.62 0.79
ROE -5.15 4.94
ROCE -2.65 11.73
Cash Conversion Cycle -9 days -9 days
Q.9 Debt to Equity ratio of Sagar Cements Ltd?
Sagar Cements Ltd Debt-to-Equity ratio is 0.30 , which is lower with the industry average of 0.39 , 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

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)

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 5.91% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,566.6 1,298.5
Gross Profit 1.6 77.3
Operating Profit 57 97
Net Profit -85 43
Operating Efficiency
Current Level Industry Median
Asset Turnover 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 4.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 4.9% 4.3% -1.3% -15.6%
Q.3 Valuation ratios of Sagar Cements Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 27.08 34.86
Price to Book 1.52 1.06 1.92
Price to Sales 1.44 1.52 1.25
EV to EBITDA 19.37 9.67 11.55

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