KR Choksey's research report on The Ramco Cements
EBITDA declined by 22.6% YoY (-1.9% QoQ) to INR 3,141 Mn; EBITDA margin stood at 15.4% (-196bps YoY/ +7bps QoQ) PAT stood at INR 257 Mn, down 64.3% YoY (-30.8% QoQ), beating our projections driven by strong operating performance; PAT margin stood at 1.3% (-182bps YoY / -52bps QoQ). We increase our FY26E EBITDA to INR 19,555 Mn (previously: INR 19,444 Mn) reflecting stronger than anticipated Q2FY25 earnings and increase our multiple to 14.5x FY26E EV/EBITDA (earlier: 13.0x) driven by confidence in the company’s ability to successfully execute its expansion plans, which are expected to be completed by FY26E. This optimism is further supported by an anticipated pick-up in demand, driven by infrastructure project execution, along with the expectation of improving cement pricing in the coming quarters.
Outlook
Accordingly, we increase our target price to INR 985 (previously: INR 866) and retain our “ACCUMULATE” rating on the shares of Ramco Cements Ltd.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
