Buy Ramco Cements; target of Rs 450: Motilal Oswal

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Motilal Oswal's research report on Ramco CementsRamco Cement’s (TRCL) 3QFY16’s volume de-growth reduced from double digit level of previous 5 quarters to 5.4%YoY (-5% QoQ) to 1.63mt led by broader stabilization in south market and base effect. Realizations were resilient at 0.5% QoQ. With marginal contribution from wind power business, revenue stood at INR8.1b (3.3%YoY, -7% QoQ).TRCL offers strong play on southern recovery due to (a) superior brand, (b) edge over cost efficiencies, and (c) visibility of deleveraging (stared in FY16). Our assumption of 6% volume and 4% price CAGR to drive 15%/22% EBITDA/PAT CAGR for TRCL in FY16-18. We upgrade FY16- 18 EBITDA by 6-12% to factor in better price, volume and cost. The stock trades at 9.3x/7.2x FY17E/18E EV/EBITDA, and EV/ton of USD97. We maintain Buy with a TP of INR450, an upside of 20% (valuing cement business at 8.5x FY18E EBITDA, EV/ton of USD105). For all recommendations, 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.

Read More