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Last Updated : Jun 20, 2019 12:50 PM IST | Source: Moneycontrol.com

Hold The Ramco Cements; target of Rs 853: Arihant Capital

Arihant Capital recommended hold rating on The Ramco Cements with a target price of Rs 853 in its research report dated May 22, 2019.

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Arihant Capital 's research report on The Ramco Cements


Ramco Cement came out with stable set of results in Q4FY19, ahead of our estimates. Revenue for the quarter grew 22.1% YoY and 26.6% QoQ to Rs 15324 mn against our estimate of Rs 13370 mn. EBITDA for Q4FY19 came at Rs 3251 mn (estimate Rs 2540 mn) a growth of 19.5% YoY and 51.9% QoQ. EBITDA margin expanded 354bps QoQ (-48bps YoY) to 21.2% for the quarter against 21.7% in corresponding quarter last year. EBITDA margin was stable YoY (slight fall of 48bps) despite higher raw material (+24.3% YoY) costs, due to efficiency at the company level. PAT for the quarter stood at Rs 1654 mn which was ahead of our estimate of Rs 1520 mn, a growth of 52.3% YoY and 63.6% QoQ. The robust growth of PAT on YoY basis (+52.3% YoY) was partially due to lower effective tax rate for the quarter (33% in Q4FY19 v/s 47.1% in Q4FY18).


Outlook


We remain positive on Ramco Cements from longer term perspective, and have a Hold rating with a revised target price of Rs 853.

For all recommendations report, click here

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First Published on Jun 20, 2019 12:50 pm
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