Sagar Cements Ltd (SAGCEM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

JK Lakshmi Cem.

Birla Corpn.

Mangalam Cement

Heidelberg Cem.

Orient Cement

BIGBLOC Const.

Deccan Cements

Sagar Cements

KCP

Sh. Digvijay Cem

Prism Johnson

Why is Sagar Cements Ltd ?

Weak Long Term Fundamental Strength with a -30.37% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.85 times
The company has been able to generate a Return on Equity (avg) of 1.22% signifying low profitability per unit of shareholders funds

81.2% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.15% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cement & Cement Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sagar Cements for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sagar Cements

-20.85%

-0.57

37.42%

Sensex

-7.94%

-0.61

12.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.08%

EBIT Growth (5y)

-30.37%

EBIT to Interest (avg)

0.39

Debt to EBITDA (avg)

7.01

Net Debt to Equity (avg)

1.00

Sales to Capital Employed (avg)

0.70

Tax Ratio

99.41%

Dividend Payout Ratio

-21.10%

Pledged Shares

81.20%

Institutional Holding

20.15%

ROCE (avg)

2.30%

ROE (avg)

1.22%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.39

EV to EBIT

77.26

EV to EBITDA

13.85

EV to Capital Employed

1.20

EV to Sales

1.53

PEG Ratio

Dividend Yield

ROCE (Latest)

1.55%

ROE (Latest)

-0.65%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

NET SALES(Q)

Highest at Rs 786.96 cr

PAT(Q)

Highest at Rs 87.60 cr.

EPS(Q)

Highest at Rs 6.70

-4What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 1.01 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 18.69 cr

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Here's what is working for Sagar Cements

Profit After Tax (PAT) - Quarterly

At Rs 87.60 cr has Grown at 346.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -35.57 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 786.96 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 786.96 cr has Grown at 24.9% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 630.28 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 87.60 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 6.70

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Sagar Cements

Debt-Equity Ratio - Half Yearly

Highest at 1.01 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 18.69 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income - Quarterly

Highest at Rs 11.19 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income