Ramco Cements Q4 Results Review - Ebitda Inline; Weak Pricing An Overhang: Motilal Oswal

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 Q4 FY24 Ebitda was in line with our estimates, as higher-than-estimated volume offset lower-than-estimated realisation. Its Ebitda grew 1% YoY to Rs 4.2 billion (estimate: Rs 4.0 billion). Ebitda/tonne stood at Rs 760 versus estimated Rs 794. Operating profit margin was down 50 basis points YoY to 15.6% (estimate: 16.1%). Profit after tax was at Rs 1.2 billion versus our estimate of Rs 1.1 billion due to lower-than-estimated depreciation and tax rates. Management has reduced its capex guidance by Rs 5 billion to Rs 12 billion for FY25. Its capacity utilisation stood at ~96% in Q4 FY24 aided by strong demand in both eastern and southern regions. It is expanding its clinker/grinding capacities at it Kurnool, Andhra Pradesh plant by 3.15 mt/1.5mtpa at a capex of Rs 12.5 billion. Its net debt declined Rs 2 billion sequentially to Rs 48 billion and net debt-to-Ebitda was 3.0 times in FY24. We cut our earnings per share estimates by 5% (each) for FY25/FY26. We value Ramco Cements at 12 times FY26E EV/Ebitda to arrive at our revised target price of Rs 870 (earlier Rs 940). We reiterate our Neutral rating on the stock..Click on the attachment to read the full report:.Sun Pharma, Nykaa, Deepak Nitrite, Ramco Cements, Metropolis, Star Cement Q4 Results Review: HDFC Securities .DISCLAIMERThis 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.

Ramco Cements Q4 Results Review - Ebitda Inline; Weak Pricing An Overhang: Motilal Oswal

Reduces capex guidance to Rs 12 billion in FY25 from Rs 17 billion previously

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Ramco Cements Q4 Results Review - Ebitda Inline; Weak Pricing An Overhang: Motilal Oswal

Reduces capex guidance to Rs 12 billion in FY25 from Rs 17 billion previously

Choose a plan

Follow Us

DOWNLOAD THE APP