Moneycontrol PRO
UPCOMING EVENT:Special webinar on Highlights of global investing in 2021 and what lies ahead' at 2 pm on 21st January, 2022. Register Now!

Hold Ramco Cements; target of Rs 1020: Emkay Global Financial

Emkay Global Financial recommended hold rating on Ramco Cements with a target price of Rs 1020 in its research report dated May 25, 2021.

June 10, 2021 / 11:14 AM IST
  • bselive
  • nselive
Todays L/H

Emkay Global Financial's report on Ramco Cements

Ramco's Q4FY21 EBITDA grew 61% YoY to Rs4.5bn (8% below our forecast of Rs4.9bn), but in line with consensus, because of higher-than-expected freight cost, as lead distance was up 40kms YoY. Cement EBITDA/ton increased 48% YoY to Rs1,417 (Emkay: Rs1,478). TRCL is nearing completion of 40% capacity expansion projects to 20mt and is poised to benefit from the cyclical volume upturn, which should boost its RoIC to mid-teens by FY23E and well over 20% over the next 4-5 year, in our view.


We maintain FY22-23 estimates, and our Hold rating; our DCF-derived TP of Rs1,020 (Jun'22E) implies a 13.5x 1-year forward EV/EBITDA. Current EV/EBITDA multiple of 16x indicates ongoing expansion and cyclical upturn are largely priced in. Please find our sector initiation report: Link

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: May 27, 2021 04:20 pm

stay updated

Get Daily News on your Browser
ISO 27001 - BSI Assurance Mark