SigmaRoc Plc (LSE:SRC) achieved a major milestone with the successful installation of its first carbon capture module at Nordkalk’s site in Köping, Sweden¹. After the fossil fuel replacement program, this project has been a very crucial step for the company to achieve Net Zero emissions.

While the company has been efficiently working towards better operations, let’s dig deeper into the SigmaRoc share price performance and its forecasts.

Key Points

• SigmaRoc Plc successfully installed its first carbon capture module at Nordkalk’s site in Köping, Sweden.
• SigmaRoc invests in and operates new and existing construction material assets in places where opportunity is most significant.
• SigmaRoc is focusing on environmentally friendly and cost-effective projects to improve operations.

What does SigmaRoc do?

SigmaRoc Plc is an AIM-quoted company on the London Stock Exchange that invests in and operates new and existing construction material assets in places where opportunity is greatest. They aim to gain a strong foothold in key niche markets and sectors by pushing the traditional frontiers of both strategy and tactics in construction materials.

It’s engaged in developing its pipeline of transactions and projects. The firm targets both the up and downstream heavy construction materials sectors, such as operating assets, value-added products and services, associated infrastructure, and supply chain.

The bull case for the SigmaRoc share price

The SigmaRoc share price picked up pace after its prolonged bearish streak ended at 37.4p. From here, the stock rose slowly and steadily and last closed at 61.6p. During this ten-month bullish streak, the stock appreciated by almost 65%.

What has made SigmaRoc share an investor favourite is its focus on the following growth catalysts:

• Invest
• Improve
• Innovate
• Integrate

These growth catalysts have resulted in proven resilience and delivery of growth in a challenging market. This is reflected in the continuously growing revenue, a 98% growth from last year, and an ever-increasing earnings-per-share, a 48% growth from the previous year.

The bear case for the SigmaRoc share price

SigmaRoc share price followed a bearish trend for a long period of time. Since the last quarter of 2021, from a peak price of 113p, the bearish trend initiated and continued till the last quarter of 2022. During this one year, the stock lost 67% of its value and ended its bearish run at 37.4p.

During the past year, the company’s operations were not devoid of any challenges. They had to deal with significant disruption to customers as a result of industrial action and plant issues, volatile energy prices, uncertain energy supply dynamics, and the effects of the Russian invasion of Ukraine.

However, the company’s operators were able to react swiftly to an increasingly challenging energy market, production requirements, and customer demand.

SigmaRoc Share price prediction

SigmaRoc is an excellent buy, according to analysts. The majority of the analysts have a buy stance on the company’s stocks. Looking at the SigmaRoc Share price forecast for the next 12 months, it has a median target of 100p with a high estimate of 120p and a low estimate of 95p.

Of course, like any share price forecast, these predictions seldom come true. There are always assumptions being made that may not necessarily come to pass. And investors need to take predictions with a pinch of salt, not relying on them solely when making an investment decision.

Should I buy SigmaRoc shares today?

SigmaRoc is focusing on environmentally friendly and cost-effective projects to improve operations. They seek projects with a small footprint, low capital and operational expenditures, low complexity, and environmentally friendly, highly efficient, highly favourable energy balance.

The company takes pride in providing its customers with high-quality quicklime for decades. They are further improving customer experience by focusing on sustainable alternatives. And they are positively progressing towards implementing technology in all of Nordkalk’s operating kilns by 2030.

While there remains a long road ahead, I believe SigmaRoc shares have the potential to be an excellent long-term investment. Therefore, once I have more capital at hand, I may be tempted to add some shares to my personal portfolio.

Article sources

1. World Cement. SigmaRoc’s first carbon capture facility, launched at Nordkalk’s Köping site

Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned. Views expressed on the companies and assets mentioned in this article are those of the writer and, therefore, may differ from the opinions of analysts in The Money Cog Premium services.