Check out the share trend of Sagar Cements Ltd.
Sagar Cements Ltd. – Highlights
- The shares of Sagar Cements Ltd., was trading at Rs.1032.15, up by 20% hitting a 52-week high in today’s trading session.
- The stock has increased by 201.45 % in the last year, while the S&P BSE Sensex has increased by 58.82%.
- The stock price increased after the company announced stock split plan.
- “The board of directors of the Company is scheduled to meet on July 01, 2021, inter-alia, to consider a proposal to sub-divide (split) the face value of the Company’s equity shares from Rs.10 each into an appropriate amount,” Sagar Cements said in an exchange filing.
- In general, a company intends to conduct a stock split in order to make its shares more affordable to small retail investors and increase liquidity.
- Meanwhile, rating agency India Ratings and Research upgraded Sagar Cements’ (SCL) long-term issuer rating to ‘IND A’ from ‘IND A-‘ with a positive outlook on June 10, 2021.
- SCL reported an EBITDA of Rs.400 crore in FY21, which was significantly higher than expected (FY20: Rs.186 crore). While the company’s volumes fell by 32% year on year (YoY) in Q1FY21 due to the impact of the Covid-19-led disruptions, they recovered quickly in the following quarters, growing by 2% YoY, 13% YoY, and 22% YoY in Q2FY21, Q3FY21, and Q4FY21, respectively.
- SCL’s EBITDA/ton sequentially moderated to Rs.1019 in 4QFY21 from Rs.1450-1550 levels in 1HFY21 due to a decline in prices along with an increase in input costs.
- SCL intends to merge with its wholly owned subsidiary Sagar (R), for which board approval was received in April 2021. This is likely to result in a simpler structure, which will result in lower operational and administrative costs, modest operational synergies, and easier statutory compliance.
- The company is also planning to merge with Jajpur Cement, in which it owns a 100% stake.
- At its meeting on May 12, 2021, the Board recommended to the shareholders a dividend of 6.50 per equity share of 10 each (65%) on the Company’s 2.35 cr equity shares, which includes an interim dividend of 4 per equity share (40%) already paid during the fiscal year 2020-21.
- Sagar Cements Limited was founded in 1981 with the objective of manufacturing cement. On January 26, 1985, the actual commercial journey began with a production capacity of 66,000 tonnes of OPC per year at Mattampally, Nalgonda – Hyderabad.
- Sagar Cements Limited is one of the state of Andhra Pradesh’s most modern mini cement plants. One of the company’s strengths is its use of the most sophisticated cutting-edge technology.
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