Broking house, Edelweiss Research is bullish on Madras Cements and has recommended accumulate rating on the stock.
Edelweiss Research report on Madras Cements:
We met the management of Madras Cements recently. The key takeaways from the interaction were:
Capacity expansion of 4 mtpa on schedule.
Market mix to shift away from Andhra Pradesh, post expansion.
Cement cycle outlook: short-term positive
Performance of group company Ramco Systems remains weak.
Valuations remain attractive, but given the impending cycle reversal and possible overcapacity in south, we re-iterate 'ACCUMULATE' rating on the stock.
