Buy Ramco Cements; target of Rs 748: Anand Rathi

Anand Rathi 's research report on Ramco Cements

The Covid’19-compelled lockdown from Mar’20 hurt Ramco’s Q4. Its revenue/EBITDA/PAT declined 9%/15%/12%. The Vishakhapatnam expansion was completed in Mar. Labour unavailability, however, delayed the remaining expansions by 3-5 months. With demand in the near term expected to be sluggish, we expect profitability to improve on steady pricing, lower fuel prices and new capacity commissioning.

Outlook

We maintain our Buy rating, with a higher target price of `748 (earlier `683).