Sagar Cements Q4 Review: Dolat Capital Upgrades Stock To 'Reduce', Hikes Target Price Post Inline Results

Dolat Capital upgrades Sagar Cements' rating to ‘Reduce’ from Sell with revised target price of Rs 231 based on 7.5x consolidated FY27E EV/Ebitda.

Dolat Capital

14 May 2025, 05:13 PM IST i

<div class="paragraphs"><p>Sagar Cements aims to clock an Ebitda/tn of Rs 500-750/tonne in Q1 FY26E, primarily led by the recent price hikes in the South region. (Photo Source: Vijay Sartape NDTV Profit)</p></div>

Sagar Cements aims to clock an Ebitda/tn of Rs 500-750/tonne in Q1 FY26E, primarily led by the recent price hikes in the South region. (Photo Source: Vijay Sartape NDTV Profit)

In Q4 FY25, demand picked up with a rebound in construction sector, real estate growth, and higher government spending. For FY25, demand in the South remained flat YoY with +5% growth in Karnataka market, flat to 2%/2.5%/5% degrowth for AP and Telangana/Kerela/Tamil Nadu. For FY26E, South industry demand is expected to grow by 6-8%, and the company intends to grow in line with the industry. Sagar Cements targets volume of 6-6.1 mt (...