Sharekhan is bullish on The Ramco Cements has recommended buy rating on the stock with a target price of Rs 920 in its research report dated October 30, 2019.
Sharekhan's research report on The Ramco Cements
During Q2, Ramco posted third consecutive strong net earnings growth of 47% y-o-y led by healthy volume growth of 10% y-o-y, decline in opex by 1% y-o-y and lower ETR (recognition of MAT credit). Ramco commissioned 1MTPA brownfield capacity in West Bengal. Barring delays caused by monsoons, capacity expansion programme remains on track to achieve 20MTPA by 2020 end. We expect Ramco to be well placed to benefit from the demand revival post monsoon with an incremental capacity addition and benign cost environment.
We maintain our Buy rating on The Ramco Cements with revised PT of Rs. 920 on account of upward revision in net earnings estimates for FY2020-FY2021 penciling higher OPMs.
For all recommendations report, click here
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