20 June 2020 The Ramco Cements (TRCL)s 4QFY20 results surprised positively on better- than-expected realization. While cement EBITDA was down 14% YoY, it was 17% above our estimate as realization stood 4% above estimate. We raise our FY21/FY22 EPS estimates and target price by ~5% to factor better pricing in the southern region. The commissioning timelines of ongoing expansions have also been pushed ahead by three to nine months, which has lowered FY21 capex. The stock is currently trading at 12.9x FY22 EV/EBITDA and is pricing in the volume upside, in our view. Reported revenue/EBITDA/PAT at INR13.9b/INR2.8b/INR1.5b was down 9%/ 13%/12% YoY, but came in 7%/17%/39% above our estimates. Cement realization rose 5.8% QoQ to INR4,725/t (+2% YoY) and was 4% above our est.