There is a decline in the shares that make millionaires, is this the right opportunity to buy? What do experts say

highlights

The quarterly result of Sagar Cements was not good.

The company has been incurring losses for two consecutive times.

One share of the company is currently worth Rs 208.

New Delhi. Sagar Cements has worked to make its investors millionaires in 20 years. But there has been a decline in the shares for the last 3 months and they have fallen 31 percent from their one-year high in January. However, brokerage firms believe that this is a great opportunity to buy this stock. Currently the price of this share is Rs 208.55. On April 2, 2004, this share was worth only Rs 1.57.

If someone had invested Rs 76,000 in this stock then, today he would have become a millionaire on the basis of this stock alone. Right now, after the decline, brokerage firms are calling this a good buying opportunity. Geojit BNP Paribas says that this share can go up by 18 percent from the current level of Rs 208.

Also read- If you want to save tax then invest money here, liability will reduce, people in old tax regime will benefit.

stock movement
If we look at the movement of shares in the last one year, on March 29, 2023, it was around Rs 180, which was also its lowest level in 1 year. At the same time, after 9 months, this share jumped by almost 70 percent from this level and reached the level of Rs 304.65. This was a one-year high for this stock. Now it has fallen by more than 31 percent from this level.

How will you move forward?
According to a report by Moneycontrol, good demand, government's focus on infrastructure, company's efforts to reduce costs and emphasis on increasing operational efficiency look good for the future of the company. This will support the company's growth and margins. Brokerage firm Geojit BNP Paribas has upgraded the target rating of the shares and advised to buy, its target price has been increased to Rs 246.

financial position of the company
Sagar Cements was established in 1985. In the December quarter, the company's revenue had increased by 16 percent on an annual basis to Rs 673 crore. The company suffered a loss of Rs 10 crore during this period. Due to this, in the last quarter also the company had to face a loss of Rs 11 crore. The company has estimated the net debt to be Rs 1400-1450 crore for the financial year 2024-26. During this period the company can spend Rs 470 crore on capital expenditure.

.

Tags: Business news in hindi, Stock return, Stock tips