Hold Ramco Cements; target Rs 208: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research report on The Ramco Cements

"During the quarter ended 30th Sep, 2013, The Ramco Cements has reported net sales/income from continue operations (net of excise duty) was of Rs. 9,050.30 million compared to Rs. 9,885.00 million a year ago. In Q2 FY14, Profit from operations before other income and finance costs of Rs. 570.10 million compared to Rs. 2,452.4 million a year ago. Profit from ordinary activities before tax was Rs. 119.60 million in Q2 FY14, compared to Rs. 1,967.10 million a year ago. Net profit after tax and minority interest was of Rs. 182.70 million or Rs. 0.77 per diluted share compared to Rs. 1,328.90 million or Rs. 5.58 per diluted share a year ago. Weak cement demand in the southern region amid heavy rainfalls resulted in sharp decline in its cement NSR as Ramco pushed volumes to gain market share (up 8 percent YoY, down 1 percent QoQ)."

"A good monsoon has improved the water availability for construction activities in the southern states. Cement demand should improve as sand availability in Tamil Nadu is expected to improve from Jan'2014 onwards. Weak profitability during 9M FY14 would moderate its FY13-15E EBITDA CAGR to 4 percent. With its strong brand presence in the retail markets, we expect Ramco's profitability should benefit the most as demand recovers in the southern region from Q4 FY14 onwards. Ramco Cements present capacity at 14 million tonnes and plans to reach 20 million tonnes in four to five years. Hence, we recommended "HOLD" on the stock with a target price of Rs 208," says Firstcall Research Report.

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