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Buy The Ramco Cements; target of Rs 910: KR Choksey

KR Choksey is bullish on The Ramco Cements has recommended buy rating on the stock with a target price of Rs 910 in its research report dated February 07, 2018.

February 15, 2018 / 02:03 AM IST
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KR Choksey's research report on The Ramco Cements

The Ramco Cements Ltd (TRCL) delivered a volume/revenue growth of 14.5%/12% y-o-y for Q3FY18 and volumes stood at 2.27 MT. The core markets of TRCL has suffered a significant slowdown during the current year owing to shortage of river sand in Tamil Nadu (TN) and lower off-take of infrastructure and housing projects in Kerala. Both TN/Kerala has de-grown by 17.65%/2.02% y-o-y for 9MFY18 despite a low base.


With an expected net debt of INR 4337 mn by FY20E, the company trades at an EV/EBITDA of 10.4x and EV/ton of $132. On account of a.) Higher revenue visibility, b.) Efficient cost structure, c.) Financial de-leveraging, and d.) Robust return ratios; we value The Ramco Cements Ltd at an EV/EBITDA of 13x on FY20E arriving at a target price of INR 910 translating into a potential upside of 24.1% from CMP of INR 733. We maintain our BUY rating on the stock.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Feb 7, 2018 05:14 pm

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