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Sagar Cements – Going full steam ahead on growth

The company is rapidly expanding its reach but high debt remains a concern

December 21, 2022 / 12:37 PM IST
Sagar Cements – Going full steam ahead on growth

PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Highlights - Business reported a loss in Q2 FY23 - Cement prices have firmed up in recent weeks - Margins to improve as input costs are trending downwards - Construction activity to pick up in H1 2023 - Targeting 10MT capacity by FY25 Sagar Cements’ performance in Q2 FY23 was a mix of high and low points. However, investors should keep the company on the radar as the management has ambitious growth plans. Moreover, energy prices seem to be on a declining trend, which augur...

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