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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Sagar Cements Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 10, 2024, 8:09 am

Market Cap 2,860 Cr.
Current Price 219
High / Low305/194
Stock P/E
Book Value 141
Dividend Yield0.32 %
ROCE1.33 %
ROE4.50 %
Face Value 2.00
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Sagar Cements Ltd

Competitors of Sagar Cements Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 73.7 Cr. 22.635.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,09,409 Cr. 10,72812,138/8,54447.1 2,1260.65 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 21,299 Cr. 9021,058/70077.2 3020.28 %8.17 %5.63 % 1.00
The India Cements Ltd 11,000 Cr. 355386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 7,375 Cr. 183256/16237.3 67.90.00 %16.5 %11.5 % 1.00
Industry Average32,643.93 Cr1,751.7334.09526.830.61%11.13%16.10%7.13

All Competitor Stocks of Sagar Cements Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales418393369334502558475576622540587669709
Expenses313285308287441497469528583509527582641
Operating Profit104107614761616483930608768
OPM %25%27%16%14%12%11%1%8%6%6%10%13%10%
Other Income25324121514181418444
Interest11161118474850515244474945
Depreciation20192022323738404250515756
Profit before tax7577328-13-11-68-29126-59-20-1510
Tax %36%37%35%-16%-43%-17%36%19%30%29%48%28%-13%
Net Profit48492110-19-13-44-2488-42-11-1012
EPS in Rs4.114.251.790.89-0.98-0.55-2.80-1.426.92-3.02-0.64-0.621.01

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2008Mar 2009Mar 2010Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2242704257538141,0381,2181,1751,3711,5972,2302,5052,526
Expenses1602053406307038871,0689909711,3212,0762,2592,263
Operating Profit646585123110151150186400276153246262
OPM %29%24%20%16%14%15%12%16%29%17%7%10%10%
Other Income-016447248132236973
Interest4163042625963614792202185188
Depreciation6212935485466798193156214220
Profit before tax54293251446235028110418-84-72
Tax %38%32%37%13%193%42%41%47%34%43%48%-38%
Net Profit33192044-42614271865910-52-42
EPS in Rs4.942.542.585.09-0.382.571.332.4015.885.892.31-3.32-2.42
Dividend Payout %10%29%24%20%-78%31%38%21%8%12%30%-21%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2008-20092009-20102016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-42.42%5.26%-109.09%750.00%-46.15%92.86%588.89%-68.28%-83.05%-620.00%
Change in YoY Net Profit Growth (%)0.00%47.69%-114.35%859.09%-796.15%139.01%496.03%-657.17%-14.77%-536.95%

Sagar Cements Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2008-2009 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:16%
3 Years:22%
TTM:4%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-956%
Stock Price CAGR
10 Years:13%
5 Years:13%
3 Years:-9%
1 Year:-18%
Return on Equity
10 Years:%
5 Years:3%
3 Years:0%
Last Year:-5%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:44 pm

MonthMar 2008Mar 2009Mar 2010Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital13151517202020222424262626
Reserves981841985327437597679221,1671,2321,9681,9151,822
Borrowings2092522314344874785094918091,5101,4781,4441,487
Other Liabilities6495122264259281432482547583621865916
Total Liabilities3855455651,2471,5091,5391,7281,9182,5463,3494,0934,2504,251
Fixed Assets1103823789571,0011,0531,2441,3841,3012,0483,1683,2503,178
CWIP20618101555125110108517100991559
Investments01538000000315000
Other Assets681301392744523613744267278868269851,014
Total Assets3855455651,2471,5091,5391,7281,9182,5463,3494,0934,2504,251

Reserves and Borrowings Chart

Cash Flow

MonthMar 2008Mar 2009Mar 2010Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +535412612910115013320237787175400
Cash from Investing Activity +-231-120-40-107-151-194-187-227-476-784223-188
Cash from Financing Activity +16970-95-235208-773110322615-367-221
Net Cash Flow-94-8-214159-121-23-15222-8232-8

Free Cash Flow

MonthMar 2008Mar 2009Mar 2010Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-145.00-187.00-146.00-311.00-377.00-327.00-359.00-305.00-409.00275.00152.00245.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2008Mar 2009Mar 2010Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days93436393633354227282230
Inventory Days34200209241386239222186189338241275
Days Payable34136150353516344312358349358267460
Cash Conversion Cycle99795-73-95-73-55-130-1337-4-155
Working Capital Days156140-15-3-6-17-18-24217-7
ROCE %27%12%14%6%8%7%8%18%8%6%1%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters50.28%50.28%50.28%45.20%45.20%45.20%45.20%45.20%48.31%48.31%48.31%48.31%
FIIs6.14%5.80%5.24%4.47%4.33%3.99%3.94%2.98%2.56%2.84%2.70%2.64%
DIIs8.16%8.96%8.87%18.21%18.15%19.06%19.07%19.59%18.75%17.04%17.26%17.07%
Public35.42%34.96%35.61%32.12%32.31%31.75%31.79%32.23%30.38%31.80%31.72%31.97%
No. of Shareholders28,74935,29543,04638,79735,48131,47131,17131,69633,27532,42135,63838,148

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Smallcap Fund2,691,8121.0971.84341,1562024-11-12689.03%
ICICI Prudential Multicap Fund2,649,6620.7470.72341,1562024-11-12676.67%
SBI Multi Asset Allocation Fund1,315,8121.2235.47341,1562024-11-12285.69%
SBI Magnum Comma Fund775,0004.1620.68341,1562024-11-12127.17%
Bandhan Core Equity Fund400,0000.2910.19341,1562024-11-1217.25%
Bandhan Infrastructure Fund341,1560.988.69341,1562024-11-120%
ICICI Prudential Commodities Fund257,8740.426.88341,1562024-11-12-24.41%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.0010.0010.00
Basic EPS (Rs.)-3.980.665.0380.2412.36
Diluted EPS (Rs.)-3.980.665.0380.2412.36
Cash EPS (Rs.)12.4012.5712.92113.2647.31
Book Value[Excl.RevalReserv]/Share (Rs.)154.53129.22111.44535.34458.07
Book Value[Incl.RevalReserv]/Share (Rs.)154.53129.22111.44535.34458.07
Revenue From Operations / Share (Rs.)191.63170.58135.90583.54527.45
PBDIT / Share (Rs.)22.9628.7624.61173.7185.07
PBIT / Share (Rs.)6.5716.8416.72139.4349.67
PBT / Share (Rs.)-6.441.418.85119.6222.29
Net Profit / Share (Rs.)-3.980.655.0378.9811.91
NP After MI And SOA / Share (Rs.)-3.322.225.8879.1611.99
PBDIT Margin (%)11.9716.8518.1029.7616.12
PBIT Margin (%)3.439.8712.3023.899.41
PBT Margin (%)-3.350.826.5120.494.22
Net Profit Margin (%)-2.070.383.7013.532.25
NP After MI And SOA Margin (%)-1.731.304.3313.562.27
Return on Networth / Equity (%)-2.231.775.5015.442.76
Return on Capital Employeed (%)2.567.207.5015.917.70
Return On Assets (%)-0.990.752.057.221.37
Long Term Debt / Equity (X)0.560.700.890.520.29
Total Debt / Equity (X)0.740.891.200.610.44
Asset Turnover Ratio (%)0.610.620.590.520.49
Current Ratio (X)0.850.970.951.150.63
Quick Ratio (X)0.550.620.670.900.40
Inventory Turnover Ratio (X)1.591.591.721.461.42
Dividend Payout Ratio (NP) (%)-21.1031.508.508.2119.09
Dividend Payout Ratio (CP) (%)5.354.953.635.734.83
Earning Retention Ratio (%)121.1068.5091.5091.7980.91
Cash Earning Retention Ratio (%)94.6595.0596.3794.2795.17
Interest Coverage Ratio (X)1.621.863.138.773.11
Interest Coverage Ratio (Post Tax) (X)0.631.041.644.991.43
Enterprise Value (Cr.)3981.143785.924295.752217.771150.15
EV / Net Operating Revenue (X)1.591.702.691.620.97
EV / EBITDA (X)13.2710.0714.855.436.07
MarketCap / Net Operating Revenue (X)1.091.111.821.220.57
Retention Ratios (%)121.1068.4991.4991.7880.90
Price / BV (X)1.401.512.311.390.70
Price / Net Operating Revenue (X)1.091.111.821.220.57
EarningsYield-0.010.010.020.110.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sagar Cements Ltd as of November 14, 2024 is: 95.48

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 14, 2024, Sagar Cements Ltd is Overvalued by 56.40% compared to the current share price 219.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Sagar Cements Ltd as of November 14, 2024 is: 52.82

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 14, 2024, Sagar Cements Ltd is Overvalued by 75.88% compared to the current share price 219.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -44.68%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 8.92, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -42.50, which is a positive sign.
  3. The company has higher reserves (946.69 cr) compared to borrowings (755.31 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (192.08 cr) and profit (41.23 cr) over the years.
  1. The stock has a low average ROCE of 9.58%, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Sagar Cements Ltd:
    1. Net Profit Margin: -2.07%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 2.56% (Industry Average ROCE: 11.13%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -2.23% (Industry Average ROE: 16.1%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0.63
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.55
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 34.09)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.74
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Sagar Cements Ltd. is a Public Limited Listed company incorporated on 15/01/1981 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L26942TG1981PLC002887 and registration number is 002887. Currently Company is involved in the business activities of Manufacture of clinkers and cement. Company’s Total Operating Revenue is Rs. 1567.86 Cr. and Equity Capital is Rs. 23.50 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
CementPlot No. 111, Hyderabad Telangana 500033info@sagarcements.in
http://www.sagarcements.in
Management
NamePosition Held
Mr. K V Vishnu RajuChairman & Ind.Director
Dr. S Anand ReddyManaging Director
Mr. S Sreekanth ReddyJoint Managing Director
Mrs. S RachanaNon Executive Director
Mr. John-Eric BertrandNon Executive Director
Mrs. O RekhaIndependent Director
Mr. Ravichandran RajagopalIndependent Director
Mr. Madhavan GanesanNominee Director
Mrs. N Sudha RaniNominee Director
Mr. Jens Van NieuwenborghAlternate Director

FAQ

What is the latest intrinsic value of Sagar Cements Ltd?

The latest intrinsic value of Sagar Cements Ltd as on 14 November 2024 is ₹95.48, which is 56.40% lower than the current market price of ₹219.00.

What is the Market Cap of Sagar Cements Ltd?

The Market Cap of Sagar Cements Ltd is 2,860 Cr..

What is the current Stock Price of Sagar Cements Ltd as on 14 November 2024?

The current stock price of Sagar Cements Ltd as on 14 November 2024 is ₹219.

What is the High / Low of Sagar Cements Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sagar Cements Ltd stocks is 305/194.

What is the Stock P/E of Sagar Cements Ltd?

The Stock P/E of Sagar Cements Ltd is .

What is the Book Value of Sagar Cements Ltd?

The Book Value of Sagar Cements Ltd is 141.

What is the Dividend Yield of Sagar Cements Ltd?

The Dividend Yield of Sagar Cements Ltd is 0.32 %.

What is the ROCE of Sagar Cements Ltd?

The ROCE of Sagar Cements Ltd is 1.33 %.

What is the ROE of Sagar Cements Ltd?

The ROE of Sagar Cements Ltd is 4.50 %.

What is the Face Value of Sagar Cements Ltd?

The Face Value of Sagar Cements Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sagar Cements Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE