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

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.


Outlook


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


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Nov 2, 2018 01:20 pm
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