Hold The Ramco Cement; target of Rs 768: Arihant Capital

Arihant Capital's research report on The Ramco Cement

For the quarter ended March, 2017, company reported a rise in revenue by 6.4% to Rs 1,190 cr vs. Rs 1,118 cr in the corresponding quarter of previous year. RCL continued to report robust growth in sales volume for fifth successive quarter. Meaningful demand up-tick in Southern states especially during Mar’17 and venturing into new markets led to 9.5% YoY and 14.5% QoQ growth in RCL’s sales volume to 2.28mnT (including 0.03mnT exports).

Outlook

We have valued stock on EV/EBITDA of 12.5 FY19 estimates and have arrived at a fair value of Rs 768 per share. We have HOLD rating on th stock.