Girish Pai

Nirmal Bang

Equity Bottom-Up

<p>4QFY21 Result Update</p>
<h2>Sagar Cement Ltd</h2>
<h3>Strong Volume growth from FY23 onwards </h3>
<p>Sagar Cement is on track to commission its two new plants (2.5mn mt) by September 2021. However, the management is conservatively expecting only 0.4mn mt incremental volumes from the new plants in the initial period. For FY22, the capacity utilization for Jajpur and Satguru plant maybe 70% and 75-80%, respectively. According to the management, the demand recovery will be similar to that of FY21 (with 1Q being worst and…</p>

<p>3QFY21 Result Update</p>
<h2>Sagar Cement Ltd.</h2>
<h3>Good performance driven by lower operating costs </h3>
<p>For the 3rd consecutive quarter, Sagar Cements Ltd (SGC) has reported an EBITDA/mt of Rs1,000+, which was primarily driven by declining operating costs and better realizations compared to last year. For 3QFY21, net sales increased by 38.8% YoY to Rs. 3.6bn. This was primarily driven by a 12.7% YoY increase in cement volumes to 0.86 mn mt, and 23.2% YoY growth in realization/mt. Despite having lower…</p>

<p>Management Meet Update</p>
<h2>Sagar Cement Ltd.</h2>
<h3>Conference call KTAs – higher margins here to stay</h3>
<p>We hosted Sagar Cements (SGC) management for a call to understand the company’s future prospects and industry dynamics in the near to medium term. We retain our positive stance on the company as we believe that stable pricing and gradually improving demand will keep margins higher despite rising operating costs. We like SGC’s low cost business operations and lower than industry investments for capex. We…</p>

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<p>2QFY21 Result Update</p>
<h2>Sagar Cement Ltd.</h2>
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<h3>Better pricing drives sharp cashflow improvement</h3>
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<p>Sagar Cements Ltd (SGC) reported yet another bumper quarter with EBITDA/mt of Rs1,451, which was primarily driven by higher cement realization and controlled operating costs. Key surprise was volume, which increased by 1.7% YoY despite contraction in volume in SGC’s markets. Demand and pricing in south region are improving, which augurs well for the company as positive cashflows will help it to…</p>
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<p>Company Update</p>
<h2>Sagar Cement Limited</h2>
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<h3>Exciting times ahead as company set to enter new territory</h3>
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<p>Sagar cement (SGC) is one of our preferred picks in small cap cement space and we believe that it is one of the best small cap ideas with a potential of exponential gains over the next 3 to 4 years. We believe that multiple factors like improvement in demand scenario in SGC’s core markets (on the back of weak base of past year), relatively better realizations (after hitting inflation adjusted…</p>
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India

Sagar Cements Ltd. produces and distributes portland cement.  The Company offers slag, super grade, and special sulphate resistance cements.

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