Sagar Cements – Is it worth looking at amid near-term demand slowdown?
Sagar Cements has adjusted its volume growth guidance due to a slower ramp-up in capacity amidst a near-term demand slowdown.
Sagar Cements, a mid-sized cement manufacturer, reported a solid performance for the quarter ending December 2023, driven by a favorable demand trend in key markets. Despite this, the company's cement volumes fell short of expectations due to a slow ramp-up in capacity.
The company has targeted volumes of 5.6 million tons for FY24, even as cement prices have dropped by 2-3 percent during the peak construction season. This scenario raises questions about the company's short-term outlook amidst declining fuel prices, which are expected to support margins, and the company's efforts to ramp up production at Andhra Cements.
Highlights from the Article:
- Cement volumes grew by 14 percent in Q3.
- Decline in fuel prices expected to support margins.
- Company targets 5.6 million tons volumes for FY24.
- Cement prices have fallen by 2-3 percent in the peak construction season.
Source: Moneycontrol