Last Updated : Nov 02, 2018 01:20 PM IST | Source:

Buy Sagar Cements; target of Rs 817: Anand Rathi

Anand Rathi is bullish on Sagar Cements has recommended buy rating on the stock with a target price of Rs 817 in its research report dated October 30, 2018.

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Anand Rathi's research report on Sagar Cements

Strong volume growth, lead-distance optimisation and on-time capacity expansion helped Sagar Cements post decent revenue growth despite a strong blow to realisations. However, the shutting of its BMM unit for maintenance and upgrading led to a 45% y/y drop in overall EBITDA. The pricing environment, however, continues to be bleak so far. We expect some improvement in pricing to start in mid-November. We retain our Buy rating on the stock, with a price target of `817.


We expect the company to continue to post strong volumes in H2 FY19 on the back of a pick-up in volumes expected in the southern states, especially AP and Telegana. At our target price of `817, the stock quotes at 8.5x FY20e EV/EBITDA, an EV/ton of $51.7 and a PE of 17.7x.

For all recommendations report, click here

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First Published on Nov 2, 2018 01:20 pm
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