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Dolat Captial Report
The Ramco Cements Ltd. reported a weaker‑than‑expected Q3 FY26 performance, with results falling short of Dolat Capital's estimates, although volumes remained broadly in line with expectations.
Dolat Capital projects revenue/Ebitda/adjusted profit after tax compound annual growth rate of 8.8%/18.9%/116.6% over FY25–FY28E, driven by volume growth of 1.7%, 10.0% and 9.2% in FY26E/FY27E/FY28E, respectively. Realisation per tonne is expected to grow 5.0%/0.5%/0.0% over the same period.
The brokerage has sharply revised its estimates following lower‑than‑anticipated realisations. FY26E/FY27E/FY28E Ebitda estimates have been cut by 14.6%, 12.2% and 11.8%, respectively. Dolat Capital has also slashed its FY26E APAT estimate by 51.1%, factoring in lower‑than‑expected tax outgo on gains from land sales.
With profitability yet to show meaningful improvement, and after a 17% stock rally since the Q2 FY26 update, Dolat Capital maintained its ‘Sell' rating on Ramco Cement.
The brokerage has assigned a revised target price of Rs 874, valuing the company at 11 times FY28E EV/Ebitda plus 50% of FY28E CWIP.
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