Motilal Oswal's research report on The Ramco Cements
The Ramco Cements (TRCL) is expected to benefit from the sharp price hikes in the southern region along with a higher pace of consolidation in the region. The average cement price in the South has increased MoM by INR33/bag (~10%) in Apr’25. TRCL has a higher exposure in the southern region, with 78- 79% of its total volume being sold in the southern markets. The Tamil Nadu (TN) government has imposed an INR160/t mining tax on limestone mining. TRCL is estimated to be the most impacted given its higher clinker capacity in TN (~52% of its total capacity). However, the recent price hikes, improvement in the clinker-to-cement (C:C) ratio, and cost reduction measures are likely to more than offset the additional mineral tax burden.
Outlook
The stock is currently trading at 14x/12x FY26E/FY27E EV/EBITDA (vs. its longterm average of 15x) and USD119/USD102 EV/t (vs. long-term average of USD130). We value the stock at 13x (earlier 12x) FY27E EV/EBITDA to arrive at our revised TP of INR1,030 (vs. INR900). Reiterate Neutral.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
