ICICI Direct's research report on Sagar Cement
Sagar Cements is a south based cement player with cement capacity of 10.1 MT (including Andhra Cements). Region wise, AP/Telangana accounted for ~60% of sales followed by Tamil Nadu (16%), Karnataka (9%). Going forward, the company will be able to develop a presence in the fastergrowing eastern market and the more profitable central market with the recent commissioning of the new 2.5 MT capacity • Captive power (61.5 MW) and grinding units near market give it cost advantage.
Outlook
We upgrade the stock from HOLD to BUY owing to the recent price correction and maintain our previous target price. We value Sagar at Rs 250 i.e. 8x FY25E EV/EBITDA.
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