The Ramco Cements Ltd. share price target

expansion in the East and South, leading to its volumes growing 15% in FY22. Further, we expect net D/E to shrink to 0.4x in FY22 (from 0.6x in FY20) with delevering and greater profitability. We maintain a Buy rating, with a higher target price of `777 (earlier `748), based on 16x FY22e EV/...

FY20 has been a challenging year for the Indian cement industry. The industry produced 334.48 MTPA cement in FY20 vs. 337.32 MTPA in FY19, de-growth of 0.84% vs. 13.3% growth in FY19. Weak macro-economy and real estate sector along with liquidity crisis and lower credit flow resulted in subdued demand. The capacity utilisation of the industry declined to...

Ramco Cements' Q1FY21 numbers broadly remained above our estimates with better net profitability. The company reported a 24.6% YoY drop in revenues to | 1,048 crore (vs. I-direct estimate of | 934 crore). This was mainly led by 28.3% fall in sales volume during the quarter to 1.94 MT (vs. I-direct estimate: 1.8 MT) as the company's operation were impacted from mid-March due to imposition of lockdown. On the other hand, realisations remained better, increasing 5% YoY to | 5,408/tonne (vs. I-direct estimate: 5043/t). Total costs per tonne increased 6.6% YoY to | 4051/t. This was led...

Pace of work on expansion projects picked up as company maintained its timeline of commissioning barring Odisha unit The Ramco Cements (TRCL) posted Q1FY21 EBITDA in line with ours and above consensus estimates by 7%. While, PAT came below our estimates by 7% due to higher interest cost. We continue to remain negative on Southern region due to overcapacity as...

We broadly maintain our estimates for FY21E/ FY22E factoring Q1FY21 results. We like TRCL for its strong distribution (supports its industry leading volume growth) and healthy profitability metrics (despite turbulent south markets). Thus, we maintain Accumulate with a TP of...

For Q1FY2021, The Ramco Cements (Ramco) reported better-than-expected performance on all fronts. The company's standalone revenue stood at Rs. 1,042 crore, down 24.7% y-o-y, which was led by a decline of 28.3% y-o-y in cement volume affected by COVID-19 led nationwide lock down in April 2020. The blended realization was up 5.8% y-o-y (up 10.6% q-o-q) led by a steep increase in cement prices in the southern region. The company also performed better on operational front with EBITDA/tonne at Rs. 1161 (up 3.7% y-o-y) which was aided by higher realization along with lower power & fuel costs (down 20.8% y-o-y on per tone basis). However, adjusting for the ESOPs...

For Q1FY2021, The Ramco Cements (Ramco) reported better-than-expected performance on all fronts. The company's standalone revenue stood at Rs. 1,042 crore, down 24.7% y-o-y, which was led by a decline of 28.3% y-o-y in cement volume affected by COVID-19 led nationwide lock down in April 2020. The blended realization was up 5.8% y-o-y (up 10.6% q-o-q) led by a steep increase in cement prices in the southern region. The company also performed better on operational front with EBITDA/tonne at Rs. 1161 (up 3.7% y-o-y) which was aided by higher realization along with lower power & fuel costs (down 20.8% y-o-y on per tone basis). However, adjusting for the ESOPs...

Ramco Cement reported weak set of numbers in Q4FY20 with fallen annual figures but a solid growth sequentially. The standalone topline degrowth was at -9.3% YoY/8.8% QoQ to Rs 13,899 mn, EBITDA for the quarter fell by 14.1% YoY/37.6% QoQ to Rs 2,792 mn and Net Profit stayed at Rs 1,462 mn, down 11.6% YoY/up 54.2% QoQ. EBITDA margin for the quarter contracted sharply by 113 bps at 20.1% for Q4FY20, primarily due to higher sales and promotion expenses incurred by the company during the quarter and negative operating leverage caused by the COVID-19-led shutdown that marred sales during the last week of March. Realisation for the quarter...

New capacity to cushion fall in FY21, spur growth in FY22 The company posted 4.7% YoY growth, mainly led by a strong H1 followed by a sluggish H2. Amid the ongoing pandemic situation, we expect demand to broadly remain weak in H1, with a gradual recovery expected from Q3 onwards. FY20 would be a washout year for cement companies. Negative topline growth was due to weak volume. FY22 should see strong growth, led by demand recovery and a weak base. In Ramco Cement's case, while it would also see lower volumes, incremental volumes coming up from...

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.