Sharekhan's research report on The Ramco Cements
Ramco reported in-line standalone revenue, led by higher-than-estimated sales volumes. Operational profitability surprised positively, driven by lower opex, especially on the power and fuel costs front. Management has retained its capacity target of 30 mtpa by FY2026, as it plans de-bottlenecking and brownfield expansions. Capex guidance for FY2025 stays at Rs. 1,200 crore. Net debt inched up q-o-q to Rs. 5,103 crore. However, non-core asset monetisation worth Rs. 1,000 crore stays on track.
Outlook
We retain a BUY on Ramco with a revised PT of Rs. 1,060, marginally increasing our valuation multiple considering its strong cost competitiveness and future capacity additions at minimal capex requirements.
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