Motilal Oswal is bullish on The Ramco Cement has recommended buy rating on the stock with a target price of Rs 680 in its research report dated January 29, 2019.
Motilal Oswal's research report on The Ramco Cement
TRCL's volumes grew 21% YoY to 2.75mt (our estimate: 2.5mt) in 3QFY19, driven by strong growth in the south and east markets. Cement realizations at INR4,392/t (-5% YoY, -5% QoQ) were below our estimate of INR4,542/t due to lower prices in focus markets. Thus, revenue increased 15% YoY to INR12.07b (our estimate: INR11.4b). Revenue from wind stood at INR9m.
We estimate 10% EBITDA and PBT CAGR over FY18-21. We value the stock at 12x Dec'20E EBITDA to arrive at a target price of INR680. Maintain Buy.
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