Sagar Cements Ltd. reported a 23% YoY revenue decline to Rs. 452cr in Q2FY25, with a net loss of Rs. 57cr. The company has reduced its FY25 volume guidance from 6.5MT to 5.75MT, while ongoing land monetization and government incentives may support future growth. Geojit Financial Services has set a target price of Rs. 250, downgrading the rating to Accumulate due to ongoing pressure on cement prices.
Sagar Cements reported disappointing Q2 FY25 results, impacted by heavy rains and a slowdown in government project spending. Despite a challenging environment, the company aims for 5-7% volume growth in FY25, with expectations of improved margins as underutilized plants ramp up production. However, cement prices remain weak, and valuations are not considered inexpensive.
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