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Published on 19/07/2019 12:07:09 PM | Source: Reliance Securities Ltd

Buy Sagar Cement Ltd For Target Rs. 740 - Reliance Securities

Posted in Broking Firm Views - Short Term Report| #Cement Sector #Sagar Cements Ltd #Trading Report #Reliance Securities Ltd

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* Sagar Cements (SAGCEM) gained ~1% in yesterday’s weak trade on the expectation of likely traction in its operational performance.

* We expect SAGCEM to register stellar ~ 80% YoY growth in EBITDA and 260% growth in profit in 1QFY20 mainly led by robust volume growth (11% YoY) and healthy realization.

* We believe a firm pricing environment, production ramp up from new plants, commissioning of 18 MW CPP and further ramp-up in WHRS capacity and hydel power are likely to aid its performance in subsequent quarters.

* Further, geographical diversification in Central region and higher blended cement bode well for SAGCEM in the long-run.

* We maintain our fundamental BUY rating on the stock with a Target Price of Rs740.

 

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