Review

RAMCO CEMENTS LIMITED 

{Ticker : 500260 { FV: Rs.1 { 52-Week H/L: Rs.845.10/553.55 

We had recommended Ramco Cements in volume no. 36, issue no. 02 (dated November 2, 2019), when the scrip was trading at Rs 784. The stock was recommended based on its robust balance sheet and continued growth rate. Ramco Cements is engaged in the manufacturing of cement, ready-mix concrete and dry mortar products. On a quarterly consolidated basis, net sales stood at Rs 1,282.35 crore, up by 12.36 per cent in Q2FY20, as compared to Rs 1,141.26 crore reported in Q2FY19. The bottom-line witnessed a jump of 43.86 per cent as it stood at Rs 170 crore in Q2FY19, as compared to Rs 118.24 crore reported in Q2FY19.Although the demand for cement was hampered owing to the monsoon season, it is expected to pick up in Q3FY20 driven by rural and affordable housing. Additionally, higher cement prices and lower costs of power, fuel and freight expenses are likely to boost profit margins in the future. We thus recommend a HOLD.