Top Brokerage Bets On This Small Cap Cement Stock, Claims Robust Gains Up To 30%, Details Inside

Nirmal bang, a leading brokerage firm' bets on Sagar Cements Ltd (SCL). The brokerage has estimated a target price of Rs 274 apiece for the stock of SCL. If you buy the stock at the current market price, it could fetch potential gains of 30% considering the given target price of the stock. It is a small-cap stock from the cement sector having a market capitalisation of Rs 2,759.89 crore. Check below to know more:

Sagar Cements' Stock outlook & Returns

Sagar Cements' on NSE last traded at Rs 211.15 apiece, up 0.45% from its previous close of Rs 210.20 apiece.

The stock in the past 1 week has fallen 3.16% and in 1 month fallen 4.37%, respectively. In 3 months it gained 4.9%. In 1 year it has fallen 7.71%. It gave 107.89% positive return in 3 years. In 5 years it gave 8.63% positive return.

Its 52-week low is Rs 154 apiece, which it recorded on 21 June 2022. The stock's 52 week high was recorded on 28 March 2022 at Rs 275 apiece.

Andhra acquisition aids to reach 10MTPA capacity

According to the brokerage firm, South India-based cement manufacturer Sagar Cements Ltd (SCL) has an installed capacity of 8.25MT (South-5.75MT, Central-1MT and East-1.5MT). SCL has a total captive power capacity of 66.85MW. In contrast to its previous predominant exposure to South India, it has now increased its market presence in the East and Central regions as well, which are seeing rapid growth.

Nirmal bang Suggests Buy The Stock With A Target Price of Rs 274/share

The brokerage said, "We expect SCL to fully capitalize on its location in the fast-growing East and Central regions. Maintaining market share in these high supply regions requires careful attention to price and brand positioning in its core consumption markets. The company's balance sheet is likely to remain leveraged if debt financing is used. We continue to rate SCL a BUY. We value SCL at 7x FY25E EV/EBITDA or Rs274."

 

Disclaimer

The stock has been picked from the brokerage report of Nirmal Bang. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.