Sanghi Industries is a leading cement manufacturer in India, part of the Ambuja Cements Limited and the diversified Adani Group. Here’s a summary of its key aspects:
Business:
- Cement manufacturing: Operates one of the largest single location cement plants in India with a capacity of 6.1 MTPA.
- Products: Offers Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), and Portland Slag Cement (PSC).
- Market: Sells cement in domestic and export markets, catering to various construction projects.
Sanghi Industries Overview
| Category | Key Information |
|---|---|
| Business | Cement Manufacturing |
| Products | OPC, PPC, PSC Cement |
| Capacity | 6.1 MTPA (Single Location Plant) |
| Market | Domestic & Export (Construction Projects) |
| Strengths | High-Quality Reserves, Advanced Technology, Efficient Operations |
| Sustainability | Strong Certifications, Environmentally Friendly Practices |
| Community Involvement | Active in Corporate Social Responsibility |
| Shareholding | Majority by Ambuja Cements & Adani Group |
| Website | https://www.sanghicement.com/ |
Sanghi Industries Products
| Category | Product | Description |
|---|---|---|
| Ordinary Portland Cement (OPC) | OPC 53 | High-strength cement suitable for a variety of construction applications, including structural elements, foundations, and slabs. |
| OPC 43 | General purpose cement for common construction needs like masonry work, plastering, and brickwork. | |
| Portland Pozzolana Cement (PPC) | PPC 53 | Eco-friendly cement with a blend of OPC and pozzolanic material, offering improved workability, long-term strength, and reduced heat evolution. |
| PPC 43 | Suitable for mass concreting projects, dams, and infrastructure construction due to its lower heat evolution and improved durability. | |
| Portland Slag Cement (PSC) | PSC 53 | Offers high strength and resistance to sulfates and chlorides, making it ideal for marine and coastal constructions, chemical resistant structures, and sewage treatment plants. |
| PSC 43 | Suitable for general construction where moderate strength and resistance to aggressive environments are required. | |
| Specialized Products | Masonry Cement: Specially designed for brickwork and mortar applications with improved workability and adhesion. | |
| White Cement: High aesthetic value and suitability for decorative purposes, architectural cladding, and landscaping projects. | ||
| Sulfate Resistant Cement (SRC): Offers enhanced resistance to sulfate attack for specific construction needs in areas with high sulfate content in soil or water. |
Sanghi Industries Awards and Recognition
| Category | Award/Recognition | Awarded By | Year |
|---|---|---|---|
| Quality & Innovation | ISO 9001 Certification for Energy Management System | International Organization for Standardization (ISO) | 1996 |
| Best Operation Awards (consecutive) | Indian Bureau of Mines & Directors of Mines Safety, Government of India | 2006-2020 | |
| Greentech Environment Excellence Platinum Award | Greentech Foundation | 2018 | |
| Capexil Award for Outstanding Performance in Export of Cement and Clinker | Chemicals and Allied Products Export Promotion Council (CAPEXIL) | 2013-2017 | |
| Brand & Customer Focus | Most Preferred Cement Brand of Real Estate Sector Award | DNA’s Real Estate and Infra Round Table and Awards | 2017 |
| India’s Most Trusted Company | IBCC, USA | 2017 | |
| Sustainability | Business Excellence in Waste Management Initiatives Award | Confederation of Indian Industry (CII) | 2014 |
| Greentech Environment Excellence Gold Award | Greentech Foundation | 2014 |
Sanghi Industries Fundamentals
| Category | Value |
|---|---|
| Market Capitalization | INR 3,278.16 Cr |
| Revenue | INR 825 Cr (FY 2023) |
| EBITDA | – |
| EPS | -18.46 |
| P/E Ratio | 45.9 |
| P/B Ratio | 2.11 |
| Dividend Yield |
0 % |
| Debt/Equity Ratio | 1.84 |
| Book Value | 51.52 |
| Face Value | INR 2 |
| ROE | 11.8% (FY 2023) |
| Debt | 1,530.69 Cr. |
Sanghi Industries Revenue and Net Profit
| Year | Revenue (Cr) | Net Profit (Cr) | YoY Revenue Growth (%) | YoY Net Profit Growth (%) |
|---|---|---|---|---|
| FY 2023 | 825 | 172 | – | – |
| FY 2022 | 1,129.42 | 56.75 | 31.7% | -61.5% |
| FY 2021 | 939.23 | 112.58 | 5.3% | 170.5% |
Sanghi Industries Shareholding Patterns
| Category | Holding % | Pledged % |
|---|---|---|
| Promoters: | 72.72 | 98.88 |
| Financial Institutions: | 2.67 | 21.69 |
| Foreign Institutional Investors (FIIs): | 1.31 | 0.00 |
| Domestic Institutional Investors (DIIs): | 1.76 | 2.95 |
| Public & Others: | 21.54 | 0.00 |
Sanghi Industries Share Price Target for 2025, 2026, 2027, 2028, 2029
| Year | Target Price (₹) |
|---|---|
| 2025 | 300 |
| 2026 | 400 |
| 2027 | 500 |
| 2028 | 600 |
| 2029 | 700 |
Sanghi Industries Share Price Target for 2025
Sanghi Industries Share Price Target for 2025 is 300.
Sanghi Industries Share Price Target for 2026
Sanghi Industries Share Price Target for 2026 is 400.
Sanghi Industries Share Price Target for 2027
Sanghi Industries Share Price Target for 2027 is 500.
Sanghi Industries Share Price Target for 2028
Sanghi Industries Share Price Target for 2028 is 600.
Sanghi Industries Share Price Target for 2029
Sanghi Industries Share Price Target for 2029 is 700.
Sanghi Industries Dividend History
Sanghi Industries does not have a history of paying dividends.
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Future Outlook of Sanghi Industries
Positive factors:
- Recent acquisition by Adani Group: In August 2023, Adani Group acquired Sanghi Industries, leading to increased market confidence and potential synergies. This could benefit Sanghi through:
- Expansion plans: Adani aims to increase Sanghi’s cement production capacity to 15 mtpa within two years, expanding their market reach.
- Enhanced infrastructure: Adani’s strong presence in infrastructure (roads, ports) could optimize transportation costs for Sanghi.
- Financial backing: Adani’s financial resources might support Sanghi’s future investments and growth initiatives.
- Strong government spending on infrastructure: India’s government is heavily investing in infrastructure projects, boosting the demand for cement. This aligns well with Sanghi’s core business.
- Increased focus on value-added products: Sanghi is exploring opportunities in value-added cement products like blended and specialty cement, which could improve margins and profitability.
- Improved financial performance: Despite recent quarterly losses, Sanghi has historically shown consistent revenue growth. The company is also undergoing a capex program to improve efficiency and reduce costs.
Risks Associated With Investing in Sanghi Industries
| Category | Risk Factor | Description | Potential Impact |
|---|---|---|---|
| Financial Strength | High Interest Payments | Sanghi Industries’ interest payments as a proportion of earnings are high, indicating potential debt strain. | Reduced profitability, liquidity issues, financial distress. |
| Auditor Resignation | The recent resignation of an auditor raises concerns about potential accounting irregularities or governance issues. | Loss of investor confidence, potential regulatory scrutiny, financial restatements. | |
| Negative to Positive Sales and Profit Growth | Inconsistent sales and profit growth can lead to uncertainty about future performance. | Fluctuating stock price, difficulty in predicting returns. | |
| Industry & Competition | Cement Sector Headwinds | The cement sector in India faces challenges such as rising input costs, intense competition, and environmental regulations. | Reduced demand, lower profitability, market share loss. |
| Dependence on Large Projects | Sanghi Industries’ significant exposure to large infrastructure projects creates dependence on a specific market segment. | Project delays, cancellations, or changes in government policies can negatively impact revenue. | |
| Management & Governance | Prominent Shareholder Influence | High promoter holding may limit minority shareholder influence and raise concerns about transparency. | Reduced liquidity, potential for decisions prioritizing promoter interests over minority shareholders. |
| Overall | Market Volatility | The broader stock market and economic conditions can significantly impact Sanghi Industries’ stock price. | Potential for losses, difficulty in timing entry and exit from the investment. |
Sanghi Industries Competitors
| Competitor | Industry | Market Cap (Cr.) | Headquarters | Key Products/Services |
|---|---|---|---|---|
| UltraTech Cement | Cement | 1,36,664.98 | Mumbai, Maharashtra | Cement, Ready-mix Concrete, Building Materials |
| Shree Cements | Cement | 69,325.22 | Beawar, Rajasthan | Cement, Wall and Floor Tiles, Gypsum Board |
| Ambuja Cements | Cement | 79,170.14 | Mumbai, Maharashtra | Cement, Ready-mix Concrete, Building Materials |
| Dalmia Bharat Cement | Cement | 64,280.95 | New Delhi, Delhi | Cement, Ready-mix Concrete, Building Materials |
| JK Cement | Cement | 30,053.01 | Jaipur, Rajasthan | Cement, Ready-mix Concrete, Building Materials |
| ACC Limited | Cement | 48,206.00 | Mumbai, Maharashtra | Cement, Ready-mix Concrete, Building Materials |
| Birla Corporation | Cement, Textiles, Sugar | 34,253.52 | Kolkata, West Bengal | Cement, Textiles, Sugar, Chemicals |
| Century Textiles & Industries Ltd. | Textiles, Cement, Pulp & Paper | 20,322.36 | Mumbai, Maharashtra | Textiles, Cement, Pulp & Paper, Real Estate |
| Gujarat Sidhee Cement Ltd. | Cement | 8,062.98 | Rajkot, Gujarat | Cement |
DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
