$IDX:SMGR long with target price 2900 within 90 daysLONG position on IDX:SMGR with a target price 2900 in 90 days. Analyst price targets averaging 3,185.83 IDR, higher than the current 2,140.00 IDR.
A Price-to-Book (P/B) ratio of 0.33 for Semen Indonesia (Persero) Tbk ( IDX:SMGR ) suggests that the stock is trading at a significant discount to its book value. SMGR’s low P/B ratio of 0.33 could make it an attractive target for foreign investors looking for undervalued assets. The low P/B ratio and EV/EBITDA NTM ratio indicate undervaluation compared to peers. This could appeal to value investors looking for bargains. Qatar has recently shown interest in Indonesian sectors like energy, tourism, and real estate, but nothing explicitly ties IDX:SMGR to Qatari funds. Without concrete deals or announcements, it’s speculative.
However, low P/B can also signal concerns. The market might be pricing in risks like declining profitability, operational challenges, or sector-specific headwinds—cement is a cyclical industry tied to construction and infrastructure, which can be volatile. It’s also possible that the book value itself is inflated due to outdated or impaired assets.
Current Share Price 2,140, 52-Week Low 2070, 52-Week High 5650. The current share price of 2,140.00 IDR, near the 52-week low, might suggest a buying opportunity for value investors, especially given IDX:SMGR ’s role as a state-owned cement giant tied to Indonesia’s infrastructure sector. Likely that infrastructure spending in 2025, including the new capital Nusantara, will boost cement demand, supporting long-term growth. IDX:SMGR holds over 40% of Indonesia's cement market and has recently acquired Semen Baturaja, potentially enhancing efficiency.
Given the undervaluation, significant infrastructure spending, and analyst optimism, IDX:SMGR appears to have potential for a long trade.
