Cement · TRCL
Cement
from 909 today
We maintain HOLD on The Ramco Cements with an unchanged target price of INR 942, as we see limited scope to revise upward our earnings and valuation multiples due to industry-wide elevated competitive intensity, low RoEs, and high leverage.
For Q1FY27, The Ramco Cements reported a beat across all parameters with volume up 12% YoY and realization up 5% QoQ, leading to EBITDA coming in 27% ahead of estimates. However, the brokerage maintains a HOLD rating with an unchanged target price of INR 942 due to volatile fuel inventory costs, seasonal weakness, and ongoing competitive intensity.
We maintain our EBITDA estimates for FY27/FY28E. We value the stock at 13x FY28E EV/EBITDA to arrive at a TP of INR900. Reiterate Neutral.
The Ramco Cements reported a broadly in-line 1QFY27 with EBITDA declining 23% YoY as higher realizations only partly offset cost inflation. Factoring higher cost inflation, we cut our FY27-28E EBITDA by 3-4% and maintain HOLD with a revised target price of INR 1,050.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
