Sagar Cements slumps ahead of board meet to mull sale of investment

Sagar Cements fell 4.73% to Rs 337.10 at 13:44 IST on BSE ahead of the company's board meeting later today, 15 July 2014, to consider sale of investment in joint venture with Vicat Sagar Cement.

Meanwhile, the BSE Sensex was up 67.33 points, or 0.27%, to 25,074.31.

On BSE, so far 3,693 shares were traded in the counter, compared with an average volume of 1,315 shares in the past one quarter.

The stock hit a high of Rs 365 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 336.20 so far during the day. The stock hit a 52-week low of Rs 131.25 on 17 February 2014.

 

The stock had outperformed the market over the past one month till 14 July 2014, rising 11.17% compared with 0.88% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 115.89% as against Sensex's 10.51% rise.

The small-cap company has an equity capital of Rs 17.39 crore. Face value per share is Rs 10.

Sagar Cements' board will consider the sale of company's investment in its joint venture (JV), Vicat Sagar Cement.

In 2008, Sagar Cements had formed the JV with French cement firm Vicat for a 5.5 million tonnes per annum (mtpa) greenfield cement plant with a 60 megawatts (MW) captive power plant at Chatrasala in Karnataka's Gulbarga district at Rs 2500 crore. Sagar holds 47% in the JV, while Vicat has the remaining 53%.

According to recent media reports, Vicat is willing to acquire Sagar Cements' entire stake in the JV and make it a completely-owned entity.

Reports suggest that once Sagar Cement receives approval from its board, it will seek shareholders' approval through postal ballot. Sagar Cement is hoping to complete the entire transaction by September 2014, reports said.

Sagar Cements reported net loss of Rs 11.36 crore in Q4 March 2014 as against net loss of Rs 4.24 crore in Q4 March 2013. Net sales declined 2.87% to Rs 146.74 crore in Q4 March 2014 over Q4 March 2013.

Sagar Cements is engaged in manufacture of cement at its plant in Mattampally, Nalgonda District, Andhra Pradesh.

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