Buy Sagar Cements, target price Rs 250: ICICI Securities

ICICI Securities has buy call on Sagar Cements with a target price of Rs 250. The current market price of Sagar Cements Ltd. is Rs 183.35.

Sagar Cements Ltd., incorporated in the year 1981, is a Small Cap company (having a market cap of Rs 2398.48 Crore) operating in Cement sector.

Sagar Cements Ltd. key Products/Revenue Segments include Cement, Power, Scrap, Coal and Other Operating Revenue for the year ending 31-Mar-2022.



Financials
For the quarter ended 31-12-2022, the company reported a Consolidated Total Income of Rs 590.02 Crore, up 20.54 % from last quarter Total Income of Rs 489.48 Crore and up 75.83 % from last year same quarter Total Income of Rs 335.57 Crore. Company reported net profit after tax of Rs -27.19 Crore in latest quarter.

Investment Rationale
With the recent price correction, Sagar Cement is trading at attractive valuations (US$50/t vs. replacement cost of US$110/t). It believes Sagar Cement is an attractive regional play in the southern cement markets and has demonstrated the ability to be one of the lowest cost producers

Promoter/FII Holdings
Promoters held 45.2 per cent stake in the company as of 31-Dec-2022, while FIIs owned 3.99 per cent, DIIs 19.05 per cent.