Buy The Ramco Cements; target of Rs 1000: Sharekhan

Sharekhan's research report on The Ramco Cements

In Q3FY21, operational performance was largely in line, while net profit lagged estimates on account of a higher tax rate. Key southern markets were hit by rains which weakened demand. A couple of projects got delayed led by COVID-related challenges; Capex of Rs. 537 crore remaining for ongoing expansions. Ramco would benefit from healthy pricing discipline in South India while demand is likely to strongly rebound in FY2022, aided by capacity expansions.

Outlook

We maintain a Buy on The Ramco Cements (Ramco) with a revised PT of Rs. 1,000.