Anand Rathi 's research report on Sagar Cements
For a view regarding its business operations and outlook, we recently spoke to Sagar Cements’ management. Doubling its capacity every 10 years with greater profitability and less balance-sheet stress remains the core focus. Aiming at 10m tpa by FY25, capacity is to be increased to 8.25m tons by Q2 FY22 and operations extended to the Central and growing Eastern regions. The present strong pricing environment and greater operating efficiencies are expected to result in robust operations.
Outlook
With a re-rating on the cards on the greater capacity over the next one year, we retain our Buy rating, with a target price of Rs733.
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