Prabhudas Lilladher's report on The Ramco Cements
"The Ramco Cements (TRCL) reported earnings below our expectation due to higher than expected costs and lower volumes. Demand in the region continued to plunge due to subdued demand across the sectors and delay in recovery expected due to formation of new states. We expect recovery to kickstart in couple of quarters on the back of clearance of financial package for newly formed states in upcoming union budget to augur the investments, increased availability of power and enhanced focus of states on increasing the spending on infrastructure. Underpinned by highly competitive operations and high quality management, we rate TRCL as the best investment play on recovery in the South. We reiterate our BUY rating with TP of Rs384, an EV/T of US$140 FY16E capacity of 13.5m tonnes", says Prabhudas Lilladher research report.
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