Sagar Cements Ltd (SAGCEM) AI Stock Analysis

• Market Cap: ₹23.63B
• Dividend Yield: 0.33%
• Average Volume (3M): 8.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• 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: ₹232.00
• Price Target Upside: 6.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -5.3
• Revenue Forecast (FY): ₹26.19B

• Rating: 48 Neutral
• Price Target: ₹179.00 ▼(-18.00% Downside)
• Action: Reiterated Date: 11/12/25
• Date: Action: Reiterated 11/12/25

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 Strength

Sustained positive operating cash flow indicates the core cement business converts sales into cash reliably. Over 2–6 months this supports working capital, funds routine maintenance capex, services interest, and provides a buffer versus cyclical demand swings, enhancing operational resilience.

Revenue Growth Trend

Mid-single-digit revenue growth reflects continued demand for cement in the company’s markets. Structurally higher volumes and steady top-line expansion help improve capacity utilization and spread fixed costs, supporting margin recovery and investment in distribution over the medium term.

Stable Equity Base

A reasonable equity proportion versus assets provides a capital buffer that lowers solvency risk and preserves borrowing capacity. This structural balance enables the company to absorb cyclical downturns, access financing for strategic capex, and maintain creditor confidence over time.

Negative Factors

Negative Net Income

Persistent negative net income signals structural margin pressure and weak profitability. Over the medium term this erodes retained earnings, limits reinvestment capacity, reduces flexibility for dividends or buybacks, and forces reliance on external funding for growth or debt reduction.

High Debt / Moderate Leverage

Elevated debt increases interest expense and refinancing risk, particularly in a cyclical construction market. Structurally higher leverage reduces financial flexibility for capex or distribution investments and magnifies downside during demand slowdowns, pressuring long-term solvency metrics.

Inconsistent Free Cash Flow

Irregular free cash flow constrains the company’s ability to deleverage, fund growth projects, or return cash to stakeholders. Even with positive operating cash flow, volatile capex and financing flows create planning uncertainty and raise the risk of ad-hoc external funding needs.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• RSI: Neutral
• STOCH: Positive

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 194.32, above the 50-day MA of 198.32, and below the 200-day MA of 228.44, indicating a bearish trend. The MACD of -3.76 indicates Positive momentum. The RSI at 33.93 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, 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	₹22.55B	46.52	―	0.19%	10.61%	43.88%
SAURASHCEM	55 Neutral	₹6.85B	-22.13	―	2.39%	2.37%	55.27%
NCLIND	49 Neutral	₹8.21B	17.17	―	1.52%	-16.46%	-21.60%
SAGCEM	48 Neutral	₹23.63B	-12.17	―	0.33%	3.34%	-112.79%
SANGHIIND	44 Neutral	₹14.07B	-3.63	―	―	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.