The Ramco Cements Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for RAMCOCEM, BSE:500260 The Ramco Cements Ltd.

The Ramco Cements Ltd.

30 Jan 2020

1154.60

-1.92%

Ramco Cements

Buy: The Ramco Cements Ltd.

Target

ICICI Securities Limited

Additional capacity to aid volume growth; margins to improve The company registered growth of 3.5% YoY amid a sluggish demand environment. This was supported by additional capacity. We expect the growth momentum to continue for Ramco led by ramping up of capacities, which would get operational later during the year. As the company increases its grinding capacity by 4 MT within a quarter or two, we expect volumes to grow at 11% CAGR in FY19-21E to 13.7 MT by FY21E. Improvement in capacity utilisation, expectation of a reduction in lead distance with the...

The Ramco Cements Ltd. has gained 47.49% in the last 1 Year

The Ramco Cements Ltd.

29 Jan 2020

1154.60

-1.92%

Disappoints on weaker realizations and higher costs

Neutral: The Ramco Cements Ltd.

Target

Motilal Oswal

Cement EBITDA was down 6% YoY as (a) margin per ton declined 9% YoY (-27% QoQ) to INR714/t due to pricing pressure in the South/East, and (b) higher costs on additional freight/promotional expenses. We cut our FY20/FY21 EPS estimates by 7%/ 6% due to expectations of sustained higher promotion spends to push volumes. We maintain EBITDA at INR1.9b (-5% YoY, -32% QoQ) was 21% below est. INR2.5b, implying EBITDA/t of INR714/t (-9% YoY, -27% QoQ) 19% below est. Cement realization declined 5% QoQ to INR4,475/t (+2% YoY, est. INR4,528/t) due to weak pricing in both the South/ East. Cost/t at INR3,780/t (+4%YoY, +1% QoQ) also came in 3% higher than our est. INR3,660/t due to higher freight costs (as clinker was supplied to the new grinding unit started in the East) and higher promotion spends. Revenue at INR12.7b (+6% YoY, -3% QoQ) was also 3% below est.

Geojit BNP Paribas upgraded The Ramco Cements Ltd. to Buy with a price target of 1268.0 on 30 Jun, 2025.

The Ramco Cements Ltd.

29 Jan 2020

1154.60

-1.92%

Ramco Cement-3QFY20 Result Update

The Ramco Cements Ltd.

Reliance Securities

The Ramco Cements Ltd. has gained 30.62% in the last 6 Months

The Ramco Cements Ltd.

02 Jan 2020

1154.60

-1.92%

RAMCO CEMENTS LIMITED

Accumulate: The Ramco Cements Ltd.

Geojit BNP Paribas

We believe strong fundamentals attract premium valuation. We value TRCL at 12x FY22 EV/EBITDA and arrive at a target of Rs840, recommend Accumulate. Corporate tax cut to revive capex cycle...boost demand The Indian cement industry has been facing a demand-supply mismatch since FY11 due to over-supply and demand slowdown. Capacity utilisation declined to ~65% in FY17-FY18 but sharply improved to 72% in FY19 due to strong improvement in demand. Demand grew 13.6% in FY19 against supply growth of ~3%. However, many companies have announced capacity additions recently, ~58MT is expected over next two years Vs ~40MT in the last two years. We expect utilisation to come down to ~70% in FY20 and then improve to 72% in...

The Ramco Cements Ltd. has gained 30.62% in the last 6 Months

The Ramco Cements Ltd.

18 Dec 2019, 05:17PM

1154.60

-1.92%

Ramco Cements (Update): Weak demand to moderate margin recovery; Capex on track. Maintain BUY

Buy: The Ramco Cements Ltd.

Target

HDFC Securities

Maintain BUY: Owing to demand and pricing disappointment in 3Q, we trim our EBITDA est for FY20/21/22E by 6/7/2% resp. Thus, we estimate TRCL to deliver 20% EBITDA CAGR during FY19-22E. We remain bullish on TRCL owing to its strong distribution and cost efficiencies, robust profitability metrics and prudent balance sheet. We maintain BUY on the stock with a revised TP of Rs 850 (13x Sep 2021E EBITDA). The stock currently trades at 13.4/10.7x FY21/22E EBITDA and at replacement cost of ~USD 150/MT. We recently hosted Ramco Cements (TRCL) mgmt for a non-deal road-show. The co indicated persisting demand decline across south and east to mute TRCLs volume growth in 2HFY20 (vs +7% in 1H). Even realization is to remain under pressure across south and east (mainly in West Bengal and AP-T). The co remains efficient on opex and fuel cost tailwinds should offset the impact of weak demand YoY.

The Ramco Cements Ltd. is trading above all available SMAs

The Ramco Cements Ltd.

30 Oct 2019

1154.60

-1.92%

Ramco Cements (2QFY20): All round performance. Maintain BUY

Buy: The Ramco Cements Ltd.

Recommendation Target

HDFC Securities

We like TRCL for its strong distribution (continued volume momentum), robust profitability metrics and prudent balance sheet. Thus, we continue to ascribe it premium valuations. We maintain BUY with a TP of Rs 880 (13x Sep'21E EBITDA, implying EV USD 179/MT. It currently trades at 12.6/10.9x FY21/22E EBITDA (EV ~USD 163/MT). We retain BUY rating with TP of Rs 880 (13x Sep21E EBITDA). Our TP implies EV/MT of USD 179/MT.

Promoters released all pledges in Jun 2025 qtr.

The Ramco Cements Ltd.

30 Oct 2019

1154.60

-1.92%

Ramco Cements

Buy: The Ramco Cements Ltd.

Target

ICICI Securities Limited

Ramco Cements continued its outperformance and reported strong Q2FY20 results. The beat was led by strong volume growth with other operational parameters coming broadly in-line with I-direct estimates. Revenues during the quarter increased 11.2% YoY to | 1316.7 crore, led by 10.3% growth in volumes to 2.72 MT (vs. I-direct estimate of 2.6 MT). Blended realisations improved marginally by 0.8% YoY to | 4,834/t (vs. I-direct estimate of | 4,797/t). On the operational front, total costs per tonne declined 1.1% YoY, in line with I-direct estimates. Further combined with a marginal...

The Ramco Cements Ltd. has gained 30.62% in the last 6 Months

The Ramco Cements Ltd.

30 Oct 2019

1154.60

-1.92%

Continues to gain market share, but pricing outlook weak

Neutral: The Ramco Cements Ltd.

Target

Motilal Oswal

volumes surprised positively (up 10% YoY to 2.72mt in a weak demand scenario), implying market share gains. Cement realizations, however, declined 5.6% QoQ to INR4,708/t (+1.8% YoY), due to weaker pricing in the 30 October 2019 southern and eastern regions of India. Thus, cement EBITDA/t also declined 20% QoQ to INR 977/t (+15%YoY). According to our estimates, we expect realization/EBITDA margins to be further pressurized in 3QFY20 as prices in the South/East are currently 2-6% below 2QFY20 average. Revenue/ EBITDA/ PAT of INR13.1/ INR2.9/ INR1.7b, up 11%/ 19%/ 47% YoY, was driven by strong volumes (+10% YoY) and lower tax rate at 21% (v/s 32% last year) due to MAT credit availed. sharply by 55% from Mar19 to INR22.2b in Sep19 (implying 1.9x net debt/ EBITDA) due to low cash conversion rate (CCR) of 0.4x and higher capex spend.

The Ramco Cements Ltd. has gained 30.62% in the last 6 Months

The Ramco Cements Ltd.

30 Oct 2019

1154.60

-1.92%

Q2FY20 Result Update

Hold: The Ramco Cements Ltd.

Target

Prabhudas Lilladhar

our/consensus estimates. The marginal beat came largely on account of better than expected volume growth (10.5% v/s PLe:+8.5%). In line with our expectation, TRCL's margins fell sharply by 24% QoQ as the competition for volumes intensified in South region post July in wake of weak discipline, poor demand and high price levels. The upcoming new supplies of Chettinad cement, Penna and TRCL would keep region's prices under prolonged pressure. Sharp fall of ~20% in pet coke/thermal coal prices over last six months would help in costs lower by Rs100-120/t in H2FY20E....

The Ramco Cements Ltd. has gained 47.49% in the last 1 Year

The Ramco Cements Ltd.

30 Oct 2019

1154.60

-1.92%

Ramco Cement-2QFY20 Result Update

Hold: The Ramco Cements Ltd.

Target

Reliance Securities

Exceeding our estimates, Ramco Cements (TRCL) has reported a strong performance mainly led by better-than-expected volume and pricing despite a challenging environment. EBITDA surged by 27% YoY to Rs2.6bn (-20% QoQ) exceeding our estimate of Rs2bn, while EBITDA/tonne stood at strong Rs958 as against Rs830 and Rs1199 in 2QFY19 and 1QFY20, respectively. Sales volume grew by a strong 10% YoY (1% QoQ) to 2.72mnT (a significant beat) despite slowdown in construction activities across pockets. Average realisation stood at Rs4,708/tonne (+2% YoY and -5.6% QoQ), which is ~Rs60/tonne higher than our estimate. PAT increased significantly by 47% YoY led by improved operating performance and lower ETR (under MAT). Its gross debt...

Number of FII/FPI investors increased from 169 to 189 in Jun 2025 qtr.

Is The Ramco Cements Ltd. worth buying?

108 Votes:

Buy 81.48%

Sell 12.96%

Hold 5.56%

RESEARCH REPORTS

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