Sagar Cements - Steered Towards Robust Growth: Systematix Initiates Coverage With A Buy

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.The buoyant industry landscape is fueled by strong demand, supported by the government’s continued emphasis on housing and infrastructure. Sagar Cements Ltd. plans to scale up the capacity of its recently acquired Andhra Cements Ltd. plant from 2.3 million tonnes per annum to 3 mtpa and rampup its existing Jeerabad (0.5 mtpa) and Gudipadu (0.25 mtpa) facilities by FY26E, to make the most of the demand momentum in the industry. Further, Sagar Cements plans to monetize-107 acres of its Vizag plant land (ongoing rate ~Rs 40 million/acre), and trim its holding in Andhra Cements to 75% from 95% currently to boost valuations. At enterprise value/tonne of $48.8, the company trades at a substantial discount to the peer group, owing to net losses in the last few quarters. We expect the stock to re-rate significantly, on anticipation that its financials will turnaround from the ensuing quarter. We value Sagar Cements at Rs 333/share, giving equal (50%) weights to EV/tonne ($70 on current 10 mtpa capacity, still at 25-30% discount to the recent acquisition) and EV/Ebitda (10 times on FY26E). Initiating a 'Buy'..Click on the attachment to read the full report:.Agro Tech Foods: Promoter Stake Sold At Discount. Are Minority Shareholders Short-Changed?.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sagar Cements - Steered Towards Robust Growth: Systematix Initiates Coverage With A Buy

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