Hold Ramco Cements; target of Rs 770: Emkay Global Financial

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Emkay Global Financial's report on Ramco Cements

Ramco’s Q4FY22 EBITDA declined 34% YoY but increased 28% QoQ to Rs3bn, in line with our estimate as better-than-expected realization was offset by higher-thanexpected cost/ton. Blended EBITDA/ton declined 34% YoY to Rs925 (Emkay est. - Rs900). Ramco has started trial run production at 2.25mt clinker capacity in Kurnool, AP, in May’22. It is likely to commission a 1mt grinding unit and 6MW WHRS by Jun’22.

Outlook

Factoring in higher input cost inflation, we cut our FY23-24 EBITDA estimates by 3- 5% and reduce our TP to Rs770 (earlier Rs800). Our-DCF based TP implies 1-year forward EV/EBITDA of 12x. Maintain Hold.

For all recommendations report, click here

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

Read More