Hold Ramco Industries; target of Rs 53: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research has recommended hold rating on Ramco Industries with a target of Rs 53, in its April 08, 2013 research report.
 
“Ramco Industries Ltd is one of the best performing highly efficient producers of Fibre Cement Sheets in India and is the Market leader. RIL has pioneered & introduced the innovative Calcium Silicate Board, a versatile Building Interior Product in India. It is the part of RAMCO group of companies entered the asbestos cement field in the year 1967. Ramco's first asbestos cement sheet plant set up at Arakkonam (Tamil Nadu) in the year 1967 and production technology has updated continuously. The second sheet plant was commissioned at Karur (Karnataka) in 1974 followed by one more sheet plant at Maksi (Madhya Pradesh) in the year 1987.”
 
“A plant for the manufacture of AC pressure pipes in 5 meters length and in diameters of 80 mm to 1000 mm was established at Maksi (MP) in 1983. This was the first plant in India to introduce pipes of 5 M length and diameters of above 600 mm. RIL is operating the most modern fibre cement roofing sheets and pipe plants in India today - in Arakkonam, Tamil Nadu; Karur, Karnataka; Maksi, Madhya Pradesh; Silvassa, Union Territory of Dadra & Nagar Haveli; Kharagpur, West Bengal; Vijayawada, Andhra Pradesh; Sinugra, Gujarat. The present aggregate capacity for Fibre Cement Sheets is 5 lakh tonnes per annum and Fibre Cement Pressure Pipe is 30 lakh tonnes per annum. Its turnover is around Rs. 300 crores and employs about 1500 persons. The entire working cycle from the feeding of raw material to the formation of sheets is automated to ensure pollution free environment in all the factories. RIL has also set up a most advanced plant in Srilanka. It has built a nation-wide dealer network and has a strong customer base among architects and builders.”
 
“Ramco Industries Ltd is one of the best performing, highly efficient producers of fibre cement sheets in India and is the Market leader, reported its financial results for the quarter ended 31st December,2012. The Third quarter witnesses a healthy increase in overall sales as well as profitability of the company. The company net profit surged to Rs. 93.00 million against Rs. 71.00 million in the corresponding quarter ending of previous year, a decrease of 30.99 %. Revenue for the quarter rose 8.08 % to Rs. 1787.90 million from Rs. 1654.20 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 1.07 a share during the quarter, registering 30.99 % increase over previous year period. Profit before interest, depreciation and tax is Rs. 270.20 millions as against Rs. 235.00 millions in the corresponding period of the previous year.”
 
“At the current market price of Rs.47.25, the stock P/E ratio is at 6.57 x FY13E and 5.52 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs. 7.19 and Rs.8.55 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 11% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 4.11 x for FY13E and 3.69 x for FY14E. Price to Book Value of the stock is expected to be at 0.84 x and 0.74x respectively for FY13E and FY14E. We recommend ‘HOLD’ in this particular scrip with a target price of Rs 53 for medium to long term Investment,” says Firstcall Research report.

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