Sharekhan's research report on The Ramco Cements
The average cement prices in South during the period January-February 2019 shows marquee improvement leading to improved profitability outlook in the near term. The healthy demand environment along with benign cost environment to aid further. The capacity expansion plans to reach to 23MT by FY2021 along with improved realisations in South to aid in 28% CAGR in net earnings during FY2019E-2021E. We revise our net earnings upwards for FY2019E-2021E by ~3% factoring improved cement prices.
Outlook
We roll forward our valuation multiple to FY2021 leading to increased PT of Rs. 830. We continue to maintain Buy.
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Read More First Published on Mar 20, 2019 04:32 pm
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