ICICI Securities has buy call on The
Ramco Cements with a target price of Rs 1120. The current market price of The Ramco Cements is Rs 963.5.
The Ramco Cements Ltd, incorporated in the year 1957, is a Large Cap company with a market cap of Rs 22698.51 Crore, operating in Cement sector.
The Ramco Cements Ltd's key Products/Revenue Segments include Cement, Power, Dry Mortar Mix, Ready Mix Concrete, Other Operating Revenue, Scrap for the year ending 31-Mar-2020.
Investment Rationale
The Ramco Cement’s capacity addition of 1.5 mnte clinker unit in Jayanthipuram and 2.25 mnte clinker unit in Kurnool has been delayed by a quarter owing to covid resurgence and is now expected to be commissioned during Q1FY22 and Q2FY22, respectively. Hence, The Ramco Cement is expected to report strong volume growth over FY22-23E. Factoring in better realisation, ICICI Securities increased its FY22-23E EBITDA by 5 per cent and raise its target price to Rs 1,120/share (earlier Rs 1,050/share). Key risk includes, lower than expected demand/prices.