Fundamentals

RAMCO CEMENTS LIMITED 

Ticker : 500260
BUY: Rs784
Target: Rs870 

Ramco Cements Limited is the flagship company of the Ramco Group, a well-known business group of South India. The main product of the company is Portland cement, manufactured in five state-of-art production facilities spread over South India, with a total production capacity of 13.0 MTPA, at present. The company is the fifth largest cement producer in the country. It also produces Ready Mix Concrete and Dry Mortar products and operates one of the largest wind farms in the country. Recently, Ramco Cement posted a strong growth in Q2FY19 on a YoY basis. The consolidated net sales stood at Rs. 1,282.35 crores, up by 12.36 per cent in Q2FY20 as compared to Rs. 1,141.26 crores reported in Q2FY19. The PBIDT for Q2FY20 was reported at Rs. 300.07 crores, posting a growth of 17.87 per cent versus Rs. 254.58 crores in Q2FY19. The bottom-line witnessed a jump of 43.86 per cent as it stood at Rs. 170 crores in Q2FY19 as compared to Rs. 118.24 crores, accrued in Q2FY19. We recommend a BUY.