Sagar Cements Ltd (SAGCEM) AI Stock Analysis

• Market Cap: ₹25.60B
• Dividend Yield: 0.33%
• Average Volume (3M): 8.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 3.34%
• EPS Growth: -112.79%
• Country: IN
• Employees: 1,189
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -4.40
• 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: ₹239.50
• Price Target Upside: 9.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ₹194.00 ▼(-11.13% 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

Operating Cash Flow

Sagar Cements' persistent positive operating cash flow shows the core cement operations convert sales into cash. Over 2-6 months this supports working capital, funds routine capex and interest servicing, reducing liquidity risk and enabling continuity despite profit volatility.

Equity Base / Balance Sheet Cushion

A stable proportion of equity financing and a reasonable equity-to-assets ratio provide a structural cushion against construction cyclical swings. This supports access to credit for upkeep and modest expansion and helps absorb short-term losses without immediate solvency pressure.

Operational Efficiency (EBITDA)

A positive EBITDA margin signals that core cement manufacturing remains operationally profitable before depreciation and finance costs. Sustained EBITDA supports internal funding for maintenance, debt service and selective reinvestment, enhancing resilience across cycles.

Negative Factors

Negative Net Income / Profitability

Reported negative net income and EBIT margins mean the business is not covering operating and financing costs after depreciation. Over months this erodes retained earnings, limits reinvestment capacity, constrains dividend policy and may necessitate corrective margin or mix improvements.

High Debt / Leverage

Elevated debt and moderate leverage raise fixed interest obligations and reduce financial flexibility. Structurally, this heightens refinancing and liquidity risk during demand slowdowns, limiting ability to fund efficiency upgrades or respond to market opportunities without costly capital.

Inconsistent Free Cash Flow

Volatile free cash flow reflects uneven conversion of operating cash into surplus after capex and financing. Persistently inconsistent FCF undermines steady deleveraging, predictable capex planning and shareholder returns, complicating multi-quarter capital allocation and growth execution.

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: 218.30
• 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 218.3 is above the 20-day moving average (MA) of 197.98, above the 50-day MA of 206.43, and below the 200-day MA of 231.30, indicating a bearish trend. The MACD of -5.39 indicates Negative momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 68.02 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	₹21.45B	27.82	―	0.19%	10.61%	43.88%
SAURASHCEM	53 Neutral	₹7.95B	23.11	―	2.39%	2.37%	55.27%
NCLIND	49 Neutral	₹8.29B	16.55	―	1.52%	-16.46%	-21.60%
SAGCEM	48 Neutral	₹25.60B	-14.71	―	0.33%	3.34%	-112.79%
SANGHIIND	44 Neutral	₹15.62B	-3.67	―	―	32.54%	19.65%

Sagar Cements Ltd Corporate Events

Sagar Cements Schedules Q3 and Nine-Month FY26 Earnings Call for 22 January

Sagar Cements Limited has announced that it will release its financial results for the third quarter and nine months of FY26 on 21 January 2026 and, following this, will host an earnings conference call for analysts and investors via Zoom on 22 January 2026 at 11:00 a.m. IST to discuss its financial performance for the period. Senior management will lead the call with prepared remarks and then take questions in an interactive Q&A session, underscoring the company’s ongoing engagement with the investment community and its focus on transparent communication around operational and financial developments.