Ramco Cements Q3 Review— Weak Realisation Drags Earnings; Motilal Oswal Retains 'Neutral', Lowers Target Price

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Motilal Oswal Report

The Ramco Cements Ltd.’s earnings were below our estimates, mainly due to lower realization. Higher competitive intensity in the company’s core market in the South has kept cement prices under pressure. Further, the company’s volume share in the South surged to ~79% in Q3 FY25 versus ~76% in Q3 FY24.

We expect the company’s volume growth to moderate to ~7% CAGR over FY25- 27 versus ~18% over FY21-25E. Higher competition and pricing pressure in its key markets, leveraged balance sheets, and low return ratios (RoE/ROCE in midsingle digits till FY26/FY27) will keep the stock price range-bound.

At current market price, the stock trades at 14/12x FY26E/FY27E enterprise value/Ebitda. We value Ramco Cements at 12 times Dec’26E EV/Ebitda and reiterate our Neutral rating with a revised target price of Rs 870 (earlier Rs 950).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.