Zee Business Managing Editor Anil Singhvi says that the valuations are attractive at current levels. The company will have an EPS of 10 this year. The sales will be 1500 cr this year. The expansion plans of the company will see its impact for next few quarters. Sales of the company will improve QoQ in FY22. The stock is trading at P/E multiple of 4 to 5. The market cap of the company is nearly Rs 1000 cr.

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Singhvi said that while comparing the stock to Shree Digvijay Cement, the company will do sales of Rs 1500 and its market cap is Rs 1000 cr while Shree Digvijay Cement sales will be Rs 1000 cr and market cap of Rs 500 cr. All companies are making similar profit, only a minor difference would be the operational efficiencies.

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Singhvi said that the stock saw strong selling in the last few quarters due to new SEBI norms, fund managers had to exit and sell many midcap companies to do the rebalancing. Promoters have significantly increased their stake in the company.

Singhvi said that the growth outlook of the company is extremely strong. There is strong demand for cement and the pricing is also good. The capex plan of the company in Kutch will yield good results going further.
Market Expert Siddharth Sedani said that the stock is near his target of Rs 50. However, expansion in Kutch can see strong opportunities in future for the company.  

Research Analyst Ashish Chaturvedi says that Sanghi Industries has a strong presence in Western region. The capacity of the company is 40 lk tonne per year. The company has a strong reserve of silica sand and limestone. Apart from India, they do business in the Middle East and Africa.

Ashish highlights that the capacity of the company will double to 80 lk tonne from 40 lk tonne as its capex pan is ready for execution. Current demand for cement and strong pricing power with cement companies will benefit Sanghi Industries going forward. The top line and bottom-line of the company will improve drastically. Promoters have increased stake to 70.33% in Q4 FY21 from 68.68% in Q3 FY21. This reinforces confidence among the investors.

Ashish said the valuations are extremely attractive. The stock is available at 1.2x market to sales, 0.6 price to book, 10x EV/EBITDA. The stock can be a multibagger in future.