Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sagar Cements Ltd

About the Company - Sagar Cements Ltd

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, Road No. 10, Hyderabad Telangana 500033info@sagarcements.in
http://www.sagarcements.in
Management
NamePosition Held
Mr. K Thanu PillaiChairman & Ind.Director
Dr. S Anand ReddyManaging Director
Mr. S Sreekanth ReddyJoint Managing Director
Mrs. S RachanaNon Executive Director
Mr. John-Eric BertrandNon Executive Director
Mr. V H RamakrishnanIndependent Director
Mrs. O RekhaIndependent Director
Mr. Jens Van NieuwenborghAlternate Director
Mrs. N Sudha RaniNominee Director
Mr. Madhavan GanesanNominee Director
Mr. Kalidindi Venkata Vishnu RajuIndependent Director

Sagar Cements Ltd. Share Price Update

Share PriceValue
Today₹246.35
Previous Day₹247.35

Basic Stock Data of Sagar Cements Ltd

Market Cap 3,179 Cr.
Current Price 243
High / Low305/180
Stock P/E104
Book Value 121
Dividend Yield0.29 %
ROCE6.70 %
ROE1.27 %
Face Value 2.00

Data Source: screener.in

Competitors of Sagar Cements Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
JK Lakshmi Cement Ltd 10,967 Cr. 9321,000/60726.2 2470.39 %14.2 %13.1 % 5.00
The India Cements Ltd 7,451 Cr. 240277/167 1820.00 %3.70 %5.46 % 10.0
J K Cements Ltd 32,992 Cr. 4,2704,565/2,70847.6 6310.35 %10.4 %9.48 % 10.0
ACC Ltd 51,086 Cr. 2,7202,746/1,59230.5 7890.34 %10.0 %7.06 % 10.0
Orient Cement Ltd 5,244 Cr. 256294/10530.1 80.30.58 %12.0 %7.85 % 1.00
Industry Average21 Cr286.826.88385.860.33%10.06%8.59%7.2

Sagar Cements Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales326364418393369334502558475576622540587
Expenses221259313285308287441497469528583509527
Operating Profit10510410410761476161648393060
OPM %32%29%25%27%16%14%12%11%1%8%6%6%10%
Other Income3225324121514181418
Interest12111116111847485051524447
Depreciation20202019202232373840425051
Profit before tax76757577328-13-11-68-29126-59-20
Tax %34%34%36%37%35%-16%-43%-17%36%7%23%29%48%
Net Profit505048492110-19-13-44-2798-42-11
EPS in Rs4.284.234.114.251.790.89-0.98-0.55-2.80-1.687.69-3.02-0.64

Sagar Cements Ltd Quarterly Chart

Sagar Cements Ltd Profit & Loss

MonthMar 2007Mar 2008Mar 2009Mar 2010Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1982242704257538141,0381,2181,1751,3711,5972,2302,417
Expenses1471602053406307038871,0689909711,3212,0762,201
Operating Profit51646585123110151150186400276153217
OPM %26%29%24%20%16%14%15%12%16%29%17%7%9%
Other Income0-01644724813223206
Interest34163042625963614792202191
Depreciation66212935485466798193156199
Profit before tax425429325144623502811041833
Tax %26%38%32%37%13%193%42%41%47%34%43%54%
Net Profit3133192044-426142718659835
EPS in Rs4.734.942.542.585.09-0.382.571.332.4015.885.892.223.44
Dividend Payout %11%10%29%24%20%-78%31%38%21%8%12%32%

Sagar Cements Ltd Profit & Loss Yearly Chart

Sagar Cements Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:17%
3 Years:24%
TTM:15%
Compounded Profit Growth
10 Years:%
5 Years:-7%
3 Years:-11%
TTM:141%
Stock Price CAGR
10 Years:24%
5 Years:16%
3 Years:22%
1 Year:15%
Return on Equity
10 Years:%
5 Years:6%
3 Years:7%
Last Year:1%

Sagar Cements Ltd Balance Sheet

MonthMar 2007Mar 2008Mar 2009Mar 2010Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital13131515172020202224242626
Reserves65981841985327437597679221,1671,2321,6111,555
Preference Capital111100000000
Borrowings292082512304344874785094918091,5101,4781,536
Other Liabilities406596123264259281432482547583618788
Total Liabilities1473855455651,2471,5091,5391,7281,9182,5463,3493,7333,906
Fixed Assets581103823789571,0011,0531,2441,3841,3012,0482,7932,795
CWIP342061810155512511010851710099114
Investments00153800000031500
Other Assets5568130139274452361374426727886841998
Total Assets1473855455651,2471,5091,5391,7281,9182,5463,3493,7333,906

Sagar Cements Ltd Reserves and Borrowings Chart

Sagar Cements Ltd Cash Flow

MonthMar 2007Mar 2008Mar 2009Mar 2010Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 44535412612910115013320237787175
Cash from Investing Activity -41-231-120-40-107-151-194-187-227-476-784223
Cash from Financing Activity 1216970-95-235208-773110322615-367
Net Cash Flow15-94-8-214159-121-23-15222-8232

Sagar Cements Ltd Financial Efficiency Indicators

MonthMar 2007Mar 2008Mar 2009Mar 2010Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days15934363936333542272822
Inventory Days3434200209241386239222186189338241
Days Payable3434136150353516344312358349358267
Cash Conversion Cycle1699795-73-95-73-55-130-1337-4
Working Capital Days17156140-15-3-6-17-18-24217
ROCE %53%27%12%14%6%8%7%8%18%8%7%

Sagar Cements Ltd Financial Efficiency Indicators Chart

Sagar Cements Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters50.28%50.28%50.28%50.28%50.28%45.20%45.20%45.20%45.20%45.20%48.31%48.31%
FIIs3.24%3.05%6.14%5.80%5.24%4.47%4.33%3.99%3.94%2.98%2.56%2.84%
DIIs11.77%11.54%8.16%8.96%8.87%18.21%18.15%19.06%19.07%19.59%18.75%17.04%
Public34.72%35.13%35.42%34.96%35.61%32.12%32.31%31.75%31.79%32.23%30.38%31.80%
No. of Shareholders14,20220,98228,74935,29543,04638,79735,48131,47131,17131,69633,27532,421

Sagar Cements Ltd Shareholding Pattern Chart

No. of Sagar Cements Ltd Shareholders

Sagar Cements Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
ICICI Prudential Smallcap Fund26918121.0971.84
ICICI Prudential Multicap Fund26496620.7470.72
SBI Multi Asset Allocation Fund13158121.2235.47
SBI Magnum Comma Fund7750004.1620.68
Bandhan Core Equity Fund4000000.2910.19
Bandhan Infrastructure Fund3411560.988.69
ICICI Prudential Commodities Fund2578740.426.88

Sagar Cements Ltd ROCE Trend

Sagar Cements Ltd EPS Trend

Sagar Cements Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.0010.0010.0010.00
Basic EPS (Rs.)0.665.0380.2412.366.66
Diluted EPS (Rs.)0.665.0380.2412.366.66
Cash EPS (Rs.)12.5712.92113.2647.3138.87
Book Value[Excl.RevalReserv]/Share (Rs.)129.22111.44535.34458.07413.64
Book Value[Incl.RevalReserv]/Share (Rs.)129.22111.44535.34458.07413.64
Revenue From Operations / Share (Rs.)170.58135.90583.54527.45596.84
PBDIT / Share (Rs.)28.7624.61173.7185.0774.65
PBIT / Share (Rs.)16.8416.72139.4349.6742.45
PBT / Share (Rs.)1.418.85119.6222.2911.37
Net Profit / Share (Rs.)0.655.0378.9811.916.66
NP After MI And SOA / Share (Rs.)2.225.8879.1611.996.66
PBDIT Margin (%)16.8518.1029.7616.1212.50
PBIT Margin (%)9.8712.3023.899.417.11
PBT Margin (%)0.826.5120.494.221.90
Net Profit Margin (%)0.383.7013.532.251.11
NP After MI And SOA Margin (%)1.304.3313.562.271.11
Return on Networth / Equity (%)1.775.5015.442.761.61
Return on Capital Employeed (%)7.207.5015.917.706.89
Return On Assets (%)0.752.057.221.370.77
Long Term Debt / Equity (X)0.700.890.520.290.36
Total Debt / Equity (X)0.891.200.610.440.52
Asset Turnover Ratio (%)0.640.590.520.490.58
Current Ratio (X)0.970.951.150.630.66
Quick Ratio (X)0.620.670.900.400.38
Inventory Turnover Ratio (X)1.491.721.461.421.56
Dividend Payout Ratio (NP) (%)31.508.508.2119.0922.51
Dividend Payout Ratio (CP) (%)4.953.635.734.833.85
Earning Retention Ratio (%)68.5091.5091.7980.9177.49
Cash Earning Retention Ratio (%)95.0596.3794.2795.1796.15
Interest Coverage Ratio (X)1.863.138.773.112.40
Interest Coverage Ratio (Post Tax) (X)1.041.644.991.431.21
Enterprise Value (Cr.)3785.924295.752217.771150.151749.14
EV / Net Operating Revenue (X)1.702.691.620.971.44
EV / EBITDA (X)10.0714.855.436.0711.49
MarketCap / Net Operating Revenue (X)1.111.821.220.571.10
Retention Ratios (%)68.4991.4991.7880.9077.48
Price / BV (X)1.512.311.390.701.58
Price / Net Operating Revenue (X)1.111.821.220.571.10
EarningsYield0.010.020.110.030.01

Sagar Cements Ltd Profitability Ratios (%)

Sagar Cements Ltd Liquidity Ratios

Sagar Cements Ltd Liquidity Ratios (%)

Sagar Cements Ltd Interest Coverage Ratios (X)

Sagar Cements Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sagar Cements Ltd

Fair Value: ₹160.28

The stock is overvalued by 34.04% compared to the current price ₹243

*Investments are subject to market risks

Strength and Weakness of Sagar Cements Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 10.92, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -28.25, which is a positive sign.
  3. The company has higher reserves (756.38 cr) compared to borrowings (0.31 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (207.15 cr) and profit (59.00 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 53.02 and average Dividend Yield of 12.52%.
  2. The stock has a low average ROCE of 14.00%, which may not be favorable.

Should I Buy Sagar Cements Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sagar Cements Ltd:
    1. Net Profit Margin: 0.38%
      • 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: 7.20% (Industry Average ROCE: 16.1%)
      • 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. Interest Coverage Ratio (Post Tax): 1.04
      • 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.
    4. Quick Ratio: 0.62
      • 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.
    5. ✗ Stock P/E: 104 (Industry average Stock P/E: 24.98)
      • 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.
    6. ✓ Total Debt / Equity: 0.89
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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