Sagar Cements Ltd stock opened its trading hour at Rs 200.45 and currently trades at Rs 199.60. The scrip is down 0.3 percent as compared to the previous closing price of Rs 200.10. In the past two days, the stock has seen a rally of around 8 percent ranging from Rs 185.10 to current levels.
The recent surge in stock prices is observed after the occurrence of a block deal pertaining to the company. As per the block deals data over the BSE, ICICI Prudential Mutual Fund bought 6,039,698 shares of Sagar Cements at a trade price of Rs 183.1 with PGIM India Mutual Fund being the selling party in the above transaction.
Sagar Cements Ltd is a manufacturer and supplier of cement and cement-related products in the country manufacturing a variety of cement such as Ordinary Portland Cement, Portland Pozzolana Cement (PPC), and Portland Slag Cement and among others. The company has a setup with an installed production capacity of 8.25 MTPA.
It manufactures Ordinary Portland Cement (OPC) of grades 53 and 43, Portland Pozzolana Cement (PPC), Sulphate Resistant Portland Cement (SRPC), Portland Slag Cement (PSC), and Ground Granulated Blast-furnace Slag (GGBS). Business segments of the company include ‘Cement Manufacturing’ and ‘Power Generation’.
Digging into the financials of the company, the revenues have increased from Rs 475 crores in Q2 to Rs 576 crores in Q3. Net profit figures, though negative, have comparatively improved from the losses of Rs 49 crores in Q2 to reduced losses of Rs 27 crores in Q3.
The profitability ratios of the company are still finding their way to cope with the earlier levels. ROE and ROCE numbers moved down on a YoY basis with ROE moving from 17.43 percent in FY20-21 to 4.84 percent in FY21-22. ROCE shifted from 18.96 percent in FY20-21 to 8.26 percent in FY21-22.
The debt to equity ratio of the company has worsened over the past three financial years with the recent movement from 0.68 in FY20-21 to 1.2 in FY21-22.
According to the data regarding December 2022 quarter, promoters of the company hold a 45.2 percent stake with 84.79 percent shares being pledged. Moreover, FIIs hold a 3.97 percent stake in the company.
Written by Amit Madnani
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