Sagar Cements Ltd Stock Analysis

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

BSE Share Price 23-Sep-2022 18:01
205.00 -9.05 (-4.23%)

DeciZen - Make an Informed Decision on Sagar Cements

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Sagar Cements Price Chart

P/E Ratio (SA) :
34.45
Market Cap :
2,679.5 Cr.
52-wk low :
155.2
52-wk high :
314.5
Bole Toh?

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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 6%-1.2%11.4%9.3%3.8%6.7%4.4%4.8%15.3%8.1%-
Value Creation Index -0.6-1.1-0.2-0.3-0.7-0.5-0.7-0.70.1-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6415595486225367489028481,3751,5681,469
YoY Gr. Rt. %--12.8%-1.9%13.4%-13.8%39.6%20.6%-6%62.2%14%-
Adj EPS 0.7-36.15.71.24.82.63.2168.86
YoY Gr. Rt. %--553.7%NA-5.8%-79.1%303.3%-46.7%24.8%396.3%-44.8%-
BVPS (₹) 30.727.76063.776.980.882.990.7101.7110.1127.9
Adj Net Profit 5.8-26.452.849.812.249.326.335.918810478
Cash Flow from Ops. 34.447.540.213235.897.789.4135423154-
Debt/CF from Ops. 6.54.36.11.56.52.73.21.90.95.8-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.5%24%20.2%14%
Adj EPS 33.2%49%50.6%-44.8%
BVPS 15.37.5108.3
Share Price 16.9% 4.8% 18.7% -28.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 2.2-10.413.99.31.86.13.13.716.98.35
Op. Profit Mgn % 6.60.31115.410.915.710.814.229.418.315
Net Profit Mgn % 0.9-4.79.682.36.62.94.213.76.65.3
Debt to Equity 0.80.90.50.40.30.30.30.30.30.7-
Working Cap Days 112122153198200132136148861370
Cash Conv. Cycle 2929164212131-25-90

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 20.24%

Net Profit is growing at healthy rate in last 3 years 50.64%

Sales growth is good in last 4 quarters at 10.21%

Return on Equity has declined versus last 3 years average to 5.00%

Latest Financials - Sagar Cements Ltd.

Standalone Consolidated
TTM EPS (₹) 6 0.6
TTM Sales (₹ Cr.) 1,469 1,762
BVPS (₹.) 127.9 121.8
Reserves (₹ Cr.) 1,646 1,566
P/BV 1.60 1.69
PE 34.45 349.95
From the Market
52 Week Low / High (₹) 155.15 / 314.50
All Time Low / High (₹) 0.92 / 319.00
Market Cap (₹ Cr.) 2,680
Equity (₹ Cr.) 26.1
Face Value (₹) 2
Industry PE 32.8

Management X-Ray of Sagar Cements :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *6.686.660.000.000.000.000.0010.9110.9184.79
* 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 (%)

News

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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