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Sagar Cements Ltd. Stock Analysis

Small Cap
Evaluated by 519 users | BSE: 502090 | NSE: SAGCEM |
Cement & Construction Materials
Sagar Cements Limited was incorporated in the year 1981 with the object, inter-alia, of manufacturing of cement. The actual commercial journey started on January 26, 1985 with the production capacity of 66,000 tonnes of OPC per annum at Mattampally, Nalgonda – Hyderabad.Sagar Cements...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.66%14.61%5.67%-1.22%11.39%9.29%3.8%6.67%4.36%4.82%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 487680641559548622536748902848
Y-o-Y Gr. Rt.-39.6%-5.8%-12.8%-1.9%13.4%-13.8%39.6%20.6%-6%
Adjusted EPS (Rs.) 8.2525.373.33-15.1830.3928.665.9924.1812.8816.12
Y-o-Y Gr. Rt.-207.5%-86.9%-555.9%NA-5.7%-79.1%303.7%-46.7%25.2%
Book Value per Share (Rs.) 146.15149.36153.24138.52299.82318.56384.54403.84414.27453.39
Adjusted Net Profit 12.444.15.8-26.452.849.812.249.326.335.9
Net Op. Cash Flow (Rs. Cr.) 31.681.634.447.540.213235.897.789.4135
Debt to Cash Flow from Ops 7.652.556.534.326.081.466.52.683.171.9
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Sagar Cements Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.3%9.1%16.5%-6%
Adjusted EPS 7.7%-11.9%39.1%25.2%
Book Value per Share 13.48.65.69.4
Share Price 16.4% 6.2% -14.8% -19.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 5.7718.332.2-10.413.879.271.826.133.053.71
Operating Profit Margin (%) 14.8816.566.590.2511.0415.3710.9115.7410.7714.17
Net Profit Margin (%) 2.546.480.9-4.729.648.012.286.62.914.24
Debt to Equity 1.10.80.840.850.470.350.30.320.340.25
Working Capital Days 10295112122153198200132136148
Cash Conversion Cycle 23232929164212131
Entity Percentage Holding
Promoters 50.90%
Institutions 15.59%
Non-Institutions 33.51%
Pledged *0.000.000.000.007.407.406.876.876.686.66
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Sagar Cements's performance infers:

Sagar Cements earnings have declined by -11.9%, whereas share price has appreciated 6.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Sagar Cements share prices over the last 10 years. Here is what we found out:

Sagar Cements share price has appreciated 13.3% annually over the past ten years.

Sagar Cements Limited was incorporated in the year 1981 with the object, inter-alia, of manufacturing of cement. The actual commercial journey started on January 26, 1985 with the production capacity of 66,000 tonnes of OPC per annum at Mattampally, Nalgonda – Hyderabad.

Sagar Cements Limited, is one of the most modern mini cement plants in the state of Andhra Pradesh. The most sophisticated state-of-the-art technology it uses is one of the strengths of the company. The plant is

Sagar Cements Limited was incorporated in the year 1981 with the object, inter-alia, of manufacturing of cement. The actual commercial journey started on January 26, 1985 with the production capacity of 66,000 tonnes of OPC per annum at Mattampally, Nalgonda – Hyderabad.

Sagar Cements Limited, is one of the most modern mini cement plants in the state of Andhra Pradesh. The most sophisticated state-of-the-art technology it uses is one of the strengths of the company. The plant is based on Dry Process Rotary Kiln Technology that is used in ‘Standard Quality' cement companies.

As its contribution to the fast developing modern India, Sagar Group, Sagar Cements has been playing the major role since 20 years by providing the cement that speaks for itself.

Now, with the help of most sophisticated technology and the trusted consumers, their product range is spreading its horizons that declare — their operations have grown to be among the largest in India. Since they believe progress is a continuous process, they are committed to become more aggressive and to be called as “The Preferred Cement Supplier of India”. This progress includes but not limited to high levels of assurance to the customers, greater financial performance for suppliers and prosperous future to their staff that can help them to play an even larger role in the community.

First Mini Plant: The first mini plant of the company is located at Mattampally, Nalgonda district, located within 35 km from the National Highway No 9 connecting Vijayawada-Hyderabad.

Sagar Cements Ltd and Vicat S.A. of France set up a 5.5-million-tonne a year cement plant at a cost of Rs 2,500 crore in Gulbarga, Karnataka in 2008. Vicat then picked up a 6.67 per cent stake in Sagar Cements for a consideration of Rs 70 crore. The joint venture, Vicat-Sagar Cements, explores opportunities for holding assets overseas. This venture gave Vicat an entry into the Indian market while for Sagar Cements it offers them an opportunity to tap overseas markets.The joint venture have an equity capital of Rs 720 crore, of which Sagar Cements’ share was Rs 196 crore and Vicat’s Rs 524 crore. The balance came as debt, for which Vicat was responsible.

Product range of the company includes:

Cements of OPC: 53 grade, OPC: 43 grade, SRC, IRS T-40 Super grade, Portland Pozzolona Cement and Portland Slag Cement.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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