Sharekhan's research report on The Ramco Cements
Ramco reported a marginal miss on standalone revenues owing to muted volume growth for Q1FY2025. However, EBITDA/tonne beat estimates owing to higher than expected realizations. Management upped capacity target by FY2026 to 30 mtpa from 26 mtpa as it plans de-bottlenecking and brownfield expansions. Capex guidance for FY2025 stay at Rs. 1,200 crore. Net debt inched up q-o-q to Rs. 4975 crore. However, it plans monetization of non-core assets worth Rs. 1000 crore over the next 12 months.
Outlook
We retain a Buy with an unchanged PT of Rs. 1,010, as roll forward of valuation to H1FY2027E earnings offset a downward revision in earnings estimates.
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