Sharekhan's research report on Ramco CementsThe Ramco Cements has run-up by over 20% over the past five to six weeks driven by an improvement in volume sales in Q4 and recovery of cement prices across certain regions (especially north and central India) from the multi-year low levels boosting overall sentiments for the cement stock. Being a quality player with a strong balance sheet, The Ramco Cements also witnessed a fair share of buying interest in the stock. The Ramco Cements has remained our preferred pick in the cement sector due to its quality management, cost efficiencies and a strong balance sheet. However, after the recent appreciation, the stock is trading at an enterprise value of close to 9x its FY2018E earnings before interest, depreciation, tax and amortisation (EBIDTA). Moreover, we see pressure for south-based players in the immediate term. Thus, we are downgrading our recommendation to Hold with a revised price target of Rs465. For all recommendations, 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.
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