The Ramco Cements share price declined more than 3 percent intraday on January 30 as HSBC has reiterated the reduce call after company's December quarter numbers.
The research house cut target to Rs 630 from Rs 640 per share.
According to HSBC, the EBITDA misses consensus estimates by 23 percent on weaker price realisation. The weak return on invested capital returns is likely to continue over the medium term.
Research house cut FY20 EBITDA estimate by 10 percent on the back of the weak Q3 and also cut FY21-22 EBITDA estimates by 4-9 percent on lower than before cost inflation evolution.
It forecast EBITDA to rise at a CAGR of 15 percent over FY20-23.
The company's Q3FY20 standalone net profit down 6 percent at Rs 94.8 crore versus Rs 101.1 crore, while revenue was up 5.6 percent at Rs 1,278 crore versus Rs 1,210 crore, YoY.
EBITDA was down 5 percent at Rs 203 crore versus Rs 213.5 crore and margin was at 15.9 percent versus 17.6 percent, YoY.
At 12:15 hrs, The Ramco Cements was quoting at Rs 791.75, down Rs 20.00, or 2.46 percent on the BSE.
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