Sagar Cements jumps 9% after block deal of 60 lakh shares

Shares of Sagar Cements surged 8 percent after a huge block deal in which 60.4 lakh shares changed hands on the BSE on April 11.

At 01.33pm, the stock price of Sagar Cements was at Rs 201.40 per share, up 8.9 percent from the previous close on the BSE.

The cement industry’s performance is likely to have improved in the third quarter of fiscal year 2023 on the back of robust demand and moderation in input costs, according to Macquarie Group.

It estimates a constructive outlook for the cement sector in the coming months.

The Sagar Cements stock price has fallen more than 24 percent since the last the one year. However, it has given a whopping 248 percent return in the past three years.

The company’s net sales was at Rs 495.25 crore in December 2022, up 99.54 percent from Rs. 248.19 crore from the same period year back.

Quarterly net profit was at Rs 14.92 crore in December 2022, up 4.48 percent from Rs. 14.28 crore in the corresponding period in 2021.

“After witnessing a QoQ recovery in Q3FY23, we expect the profitability of cement firms under our coverage universe to improve further in Q4FY23, bolstered by healthy volume, operating leverage benefits, and easing fuel prices,” Elara Capital said in a research report.

Elara Capital expects sales volumes of cements firms in India to have increased by 9 percent year-on-year, and 16 percent quarter-on-quarter during the final quarter of fiscal year 2023.

Cement prices are expected to have risen 2 percent during January-March as compared with the same period last year.

“The benefits of declining fuel prices are expected to continue to help the firms in the upcoming quarters. Price hikes have been announced in several pockets in April. With year-end volume push behind us, this increases the probability of a price hike getting partially absorbed,” Elara Capital said.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.