Anand Rathi has given Buy recommendation for Sagar Cements with a target price of Rs. 305 in its research report issued on May 16, 2022

Anand Rathi’s research report on Sagar Cements

Taking its capacity to 8.25m tonnes, Sagar Cements commissioned its MP and Odisha plants recently. To fund capacity planned to be added inorganically, it has raised debt (Rs5bn) and diluted equity (Rs3.5bn). While near-term cost pressures persist, sales volume would grow chiefly from the recently commissioned units. Being cost-efficient, Sagar with its strategic diversification to central and eastern markets and strong operations in southern markets is set to benefit.

Outlook

We retain our Buy rating on the stock, with a lower target of Rs.305.

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