Sagar Cements Ltd (SAGCEM) AI Stock Analysis

• Market Cap: ₹29.82B
• Dividend Yield: 0.32%
• Average Volume (3M): 8.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: 3.34%
• EPS Growth: -112.79%
• Country: IN
• Employees: 1,189
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -3.20
• Shares Outstanding: 130,707,550
• 10 Day Avg. Volume: 6,380
• 30 Day Avg. Volume: 8,329
• PEG Ratio: -0.03
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 25.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹259.00
• Price Target Upside: 19.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ₹213.00 ▼(-1.80% Downside)

Sagar Cements Ltd's overall stock score is primarily impacted by its financial performance challenges, including negative net income and high debt levels. The technical analysis indicates bearish momentum, with the stock trading below key moving averages. Additionally, the valuation metrics, such as a negative P/E ratio and low dividend yield, further weigh down the score.

Positive Factors

Cash Generation Ability

Positive operating cash flow indicates the company's ability to generate cash from its core operations, supporting liquidity and operational stability.

Operational Efficiency

A positive EBITDA margin suggests that the company is able to manage its operating costs effectively, which is crucial for long-term profitability and competitiveness.

Equity Financing Stability

A stable equity ratio reflects balanced financial risk, providing a solid foundation for future growth and resilience against financial volatility.

Negative Factors

Revenue Growth Challenges

Negative revenue growth impacts the company's ability to expand its market share and invest in future opportunities, posing a risk to long-term sustainability.

High Debt Levels

Elevated debt levels can strain financial resources, limit strategic flexibility, and increase vulnerability to economic downturns, affecting long-term stability.

Profitability Concerns

Sustained negative net income undermines financial health, limiting reinvestment potential and shareholder returns, which are critical for long-term growth.

Sagar Cements Ltd Business Overview & Revenue Model

Company Description

Sagar Cements Limited engages in the manufacturing and selling of cement in India. It operates through Cement Manufacturing and Power Generation segments. The company offers various cements, such as ordinary Portland, Portland Pozzolana, sulphate resistant, composite, and Portland slag cements, as well as ground granulated blast furnace slag under the Sagar brand. It also operates waste heat recovery, solar power, hydro power, and thermal power plants. Sagar Cements Limited was incorporated in 1981 and is based in Hyderabad, India.

How the Company Makes Money

Sagar Cements Ltd generates revenue primarily through the sale of cement products to various sectors, including residential, commercial, and infrastructure projects. The company employs a revenue model based on both direct sales to customers and distribution through a network of dealers and retailers. Key revenue streams include bulk sales to contractors and government projects, as well as retail sales through its extensive distribution channels. Additionally, SAGCEM benefits from economies of scale and operational efficiencies in its manufacturing processes, which help reduce costs and improve margins. Strategic partnerships with construction companies and participation in government infrastructure initiatives further enhance its market reach and revenue potential.

Sagar Cements Ltd Financial Statement Overview

Summary

Sagar Cements Ltd faces challenges in revenue growth and profitability, with negative net income impacting financial performance. The balance sheet reflects moderate leverage with a stable equity base but high debt levels. Cash flow management shows strengths in generating operating cash flow, yet inconsistencies in free cash flow highlight the need for improved capital allocation.

Income Statement

Sagar Cements Ltd has demonstrated fluctuating revenue trends, with a notable decrease in revenue in the most recent period. The gross profit margin has been relatively stable, but the company has faced challenges in maintaining profitability, with negative net income in recent years. The EBIT margin has also been negative due to high operating expenses. Despite these challenges, the company maintains a positive EBITDA margin, indicating some operational efficiency. However, the overall profitability remains a concern.

Balance Sheet

The company's balance sheet shows moderate leverage with a debt-to-equity ratio reflecting balanced financial risk. The equity ratio indicates a stable proportion of equity financing. Return on equity has been inconsistent due to fluctuating net income, impacting the overall financial health. The balance sheet strength is supported by a reasonable level of equity compared to assets, although high debt levels remain a concern.

Cash Flow

Sagar Cements Ltd has managed to maintain a positive operating cash flow, which is a positive indicator of its ability to generate cash from operations. However, free cash flow has been inconsistent, reflecting challenges in managing capital expenditures and financing activities. The operating cash flow to net income ratio is strong, suggesting efficient cash generation relative to reported earnings, albeit with room for improvement in free cash flow dynamics.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.68B	22.58B	24.98B	22.30B	15.93B	13.53B
Gross Profit	17.10B	4.37B	19.57B	8.72B	12.59B	10.34B
EBITDA	2.06B	1.35B	3.15B	3.76B	2.89B	4.01B
Net Income	-1.80B	-2.10B	-433.60M	301.50M	691.50M	1.87B
Balance Sheet
Total Assets	0.00	41.77B	43.56B	38.23B	33.64B	25.75B
Cash, Cash Equivalents and Short-Term Investments	704.90M	1.74B	1.67B	1.75B	1.43B	2.25B
Total Debt	0.00	14.46B	14.44B	14.76B	15.11B	8.21B
Total Liabilities	-17.94B	23.82B	23.37B	21.15B	20.55B	13.03B
Stockholders Equity	17.94B	17.23B	19.41B	19.95B	12.55B	12.05B
Cash Flow
Free Cash Flow	0.00	957.80M	1.75B	574.20M	-2.74B	-840.80M
Operating Cash Flow	0.00	2.34B	4.00B	1.75B	869.80M	3.77B
Investing Cash Flow	0.00	-1.13B	-1.88B	1.70B	-7.84B	-4.77B
Financing Cash Flow	0.00	-2.17B	-2.21B	-3.67B	6.15B	3.22B

Sagar Cements Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 216.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SAGCEM, the sentiment is Negative. The current price of 216.9 is below the 20-day moving average (MA) of 219.52, below the 50-day MA of 237.46, and below the 200-day MA of 226.94, indicating a bearish trend. The MACD of -6.01 indicates Negative momentum. The RSI at 40.16 is Neutral, neither overbought nor oversold. The STOCH value of 36.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SAGCEM.

Sagar Cements Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MANGLMCEM	59 Neutral	₹20.92B	34.71	―	0.21%	10.61%	43.88%
SAURASHCEM	53 Neutral	₹11.08B	79.65	―	2.19%	2.37%	55.27%
NCLIND	49 Neutral	₹9.11B	27.86	―	1.51%	-16.46%	-21.60%
SAGCEM	48 Neutral	₹29.82B	-17.86	―	0.32%	3.34%	-112.79%
SANGHIIND	44 Neutral	₹16.94B	-4.17	―	―	32.54%	19.65%