Ramco Cements Q4 show muted on weak cement prices, brokerages see downside of up to 11%

Over the past year, Ramco Cement shares have slipped around 11 percent.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Ramco Cements earnings show for the quarter ended March left brokerages unimpressed as margins remained under pressure as cement prices softened.

The cement player posted a fall of 20 percent in net profit at Rs 121 crore, down from Rs 152 crore in the corresponding quarter in the previous fiscal as cost pressures weighed.

The firm's net revenue rose four percent to Rs 2,687 crore during the quarter, up from Rs 2,581 crore in the year-ago period.

At 9.15 am, Ramco Cements stock price was quoting Rs 798.65 on the NSE, higher by three percent compared to the previous session's close.

Follow our market blog to catch all live updates

Cement volume is expected to recover post-elections, supported by robust demand from housing and commercial segments.

However, Motilal Oswal cut its target price on Ramco Cements from Rs 940 per share to Rs 870 apiece, while maintaining its neutral call. The brokerage expects the company’s volume growth to moderate to ~8 percent CAGR over
FY24-26 compared to 29 percent over FY22-24.

As of March 2024, Ramco Cements net debt increased by Rs 470 crore to Rs 4,820 crore. Emkay Global said it believes that deleveraging is unlikely over the next couple of years.

Therefore, the brokerage slashed its target price on the counter to Rs 865 per share, down from Rs 950 earlier. However, it bumped up its rating to add from reduce. According to Emkay, the recent stock correction of around 25 percent in the past three months already prices-in the near-term challenges.

Jefferies said that Ramco Cements' consistently higher leverage will continue to weigh on investor sentiment. The international brokerage cut its target price to Rs 690, implying an 11 percent downside and maintained its underperform rating.

Over the past year, Ramco Cements' shares have slipped around 11 percent. In comparison, the frontline Nifty 50 index has risen around 23 percent during the same time period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.