Sagar Cements Ltd - Stock Valuation and Financial Performance

BSE: 502090 | NSE: SAGCEM | Cement & Construction Materials | Small Cap

Sagar Cements Share Price

208 3.40 1.66%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Sagar Cements

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Sagar Cements stock performance -

mw4me loader
P/E Ratio (SA):
170.69
Market Cap:
2,725.9 Cr.
52-wk low:
179.7
52-wk high:
304.7

Is Sagar Cements Ltd an attractive stock to invest in?

1. Is Sagar Cements Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Sagar Cements Ltd is a below average quality company.

2. Is Sagar Cements Ltd undervalued or overvalued?

The key valuation ratios of Sagar Cements Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Sagar Cements Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Sagar Cements Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sagar Cements:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Sagar Cements Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % -1.2%11.4%9.3%3.8%6.7%4.4%4.8%15.3%8.1%5.4%-
Value Creation
Index
-1.1-0.2-0.3-0.7-0.5-0.7-0.70.1-0.4-0.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5595486225367489028481,3751,5681,9101,877
Sales YoY Gr.--1.9%13.4%-13.8%39.6%20.6%-6%62.2%14%21.9%-
Adj EPS -36.15.71.24.82.63.2168.83.11.2
YoY Gr.-NA-5.8%-79.1%303.3%-46.7%24.8%396.3%-44.8%-64.7%-
BVPS (₹) 27.76063.776.980.882.990.7101.7110.1127.6128.1
Adj Net
Profit
-26.452.849.812.249.326.335.918810440.616
Cash Flow from Ops. 47.540.213235.897.789.4135423154127-
Debt/CF from Ops. 4.36.11.56.52.73.21.90.95.83.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 14.6%20.6%31.1%21.9%
Adj EPS NA-8.5%-1.2%-64.7%
BVPS18.5%9.6%12.1%15.8%
Share Price 20.2% 9.7% 13.5% 13.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-10.413.99.31.86.13.13.716.98.32.71
Op. Profit
Mgn %
0.31115.410.915.710.814.229.418.39.29.1
Net Profit
Mgn %
-4.79.682.36.62.94.213.76.62.10.9
Debt to
Equity
0.90.50.40.30.30.30.30.30.70.2-
Working Cap
Days
1221531982001321361488613713757
Cash Conv.
Cycle
29164212131-25-911-2

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 31.11%

Return on Equity has declined versus last 3 years average to 1.00%

Net Profit has been subdued in last 3 years -1.15%

Sales growth is not so good in last 4 quarters at -1.06%

Latest Financials - Sagar Cements Ltd.

Standalone Consolidated
TTM EPS (₹) 1.2 3.4
TTM Sales (₹ Cr.) 1,877 2,417
BVPS (₹.) 128.1 120.2
Reserves (₹ Cr.) 1,648 1,545
P/BV 1.63 1.73
PE 170.69 61.11
From the Market
52 Week Low / High (₹) 179.70 / 304.65
All Time Low / High (₹) 0.92 / 319.00
Market Cap (₹ Cr.) 2,726
Equity (₹ Cr.) 26.1
Face Value (₹) 2
Industry PE 41.8

Management X-Ray of Sagar Cements:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.0010.9110.9184.7910.9184.7984.7984.7979.3375.24
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Sagar Cements

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales5595486225367489028481,3751,5681,910
Operating Expenses 5574885274776308057299731,2821,737
Manufacturing Costs359370229232288327289370625884
Material Costs545713375108211195240241362
Employee Cost 25333836455256768183
Other Costs 12027127134189215189287334408
Operating Profit 160955811897118402286173
Operating Profit Margin (%) 0.2%10.9%15.2%10.9%15.7%10.8%13.9%29.2%18.2%9.1%
Other Income 18363292421171792780
Interest 302329303033344669104
Depreciation 27222328334455818085
Exceptional Items 0000000000
Profit Before Tax -37378712476374628416363
Tax -12812212271012956024
Profit After Tax -26297491249273518910439
PAT Margin (%) -4.6%54.1%7.9%2.3%6.6%3.0%4.1%13.8%6.6%2.1%
Adjusted EPS (₹)-2.934.15.71.24.82.63.116.18.83.0
Dividend Payout Ratio (%)0%4%18%25%17%19%16%8%8%23%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 2415215547848248451,0101,1951,2941,667
Share Capital 17171720202022242426
Reserves 2235045377648038259881,1711,2711,641
Minority Interest0000000000
Debt178209175206234248223333719311
Long Term Debt111121106148138142115231589150
Short Term Debt6688695896107108102130161
Trade Payables4675918478150169228192234
Others Liabilities 203192158142178259275407566436
Total Liabilities 6679979781,2171,3141,5021,6762,1632,7712,649

Fixed Assets

Gross Block5355556987788681,0981,2471,9192,0042,051
Accumulated Depreciation199221256283316359413674744825
Net Fixed Assets3353334424955527388341,2451,2601,226
CWIP 40112135212210720282968
Investments 86082258266275477239285607
Inventories426266736810681124174214
Trade Receivables48584646587895101124153
Cash Equivalents 52194170562810227157140
Others Assets111212325124191169159199743241
Total Assets 6679979781,2171,3141,5021,6762,1632,7712,649

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 4740132369889135423154127
PBT -37378712476374628416363
Adjustment 55-3182537456066126134126
Changes in Working Capital 60-2060-20-9-43250-113-47
Tax Paid -10-23-5-14-4-10-37-30-15
Cash Flow From Investing Activity -57185-249-133-181-161-189-161-643135
Capex -57-93-43-133-181-169-66-30-108-73
Net Investments 036700-854-4-7-2
Others 0-89-206083-126-127-528210
Cash Flow From Financing Activity -10-11-100258-374838-50415-281
Net Proceeds from Shares 00021600103670350
Net Proceeds from Borrowing 019-3149-912-29-14464-529
Interest Paid 0-23-35-30-31-32-34-48-60-115
Dividend Paid -2-10-150-10-4-6-15-6-9
Others -94-192413725-391722
Net Cash Flow -20214-217161-121-23-16213-74-19
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-10.0877.849.151.876.143.193.7417.178.342.65
ROCE (%)-1.6766.2213.256.1810.076.196.4822.912.317.91
Asset Turnover Ratio0.930.760.720.560.610.640.530.840.790.81
PAT to CFO Conversion(x)N/A0.132.69323.33.862.241.483.26
Working Capital Days
Receivable Days29312727252837222123
Inventory Days31303341333540232832
Payable Days340386228427276198298302318215

Sagar Cements Ltd Stock News

Sagar Cements Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sagar Cements on 28-Mar-2024 16:01 is ₹208.0.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Sagar Cements stood at ₹2,725.9.
The latest P/E ratio of Sagar Cements as of 28-Mar-2024 16:01 is 170.7.
The latest P/B ratio of Sagar Cements as of 28-Mar-2024 16:01 is 1.63.
The 52-week high of Sagar Cements is ₹304.6 and the 52-week low is ₹179.7.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Sagar Cements is ₹1,877 ( Cr.) .

About Sagar Cements Ltd

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.

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